Volvo 2014 Annual Report Download - page 169

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165
Below is a presentation of derivative instruments and options of fi nancial and commercial receivables and liabilities.
Outstanding derivative instruments for dealing
with currency and interest-rate risks related to
fi nancial and commercial assets and liabilities Dec 31, 2014 Dec 31, 2013
SEK M Nominal amount Carrying value Nominal amount Carrying value
Interest-rate swaps
– receivable position 86,136 2,137 71,495 1,833
– payable position 70,109 (72) 64,790 (1,045)
Foreign exchange derivative
– receivable position 16,272 675 47,077 704
– payable position 24,332 (432) 34,714 (118)
Options purchased
– receivable position 1,788 65 1,157 5
– payable position 36 – 179 –
Options written 
– payable position 2,636 (71) 716 (4)
Subtotal 2,302 1,375
Raw material derivatives
– receivable position 208 3 182 5
– payable position 267 (23) 190 (55)
Total 2,282 1,325
Hedge accounting
Volvo Group is only applying hedge accounting on the following specifi c
hedging relationships:
• Hedging fair value of a loan. Fair value of the hedge instruments out-
standing amounted to SEK 1,290 M (1,405). Changes in fair value of the
loan related to hedge accounting amounted to negative SEK 1,022 M
(1,157). The changes in the fair value of the hedge instruments and on
the loan have been recognized in fi nance net in the income statement.
• Hedging of certain net investments in foreign operations done in previ-
ous years. The result of such hedges was recognized as a separate item
in other comprehensive income. In the event of a divestment, the accu-
mulated result from the hedge is recognized in the income statement.
• Hedging of forecasted electricity consumption. Changes in the fair
value are recognized in the cash fl ow hedge reserve in OCI for effective
hedge accounting.
Refer to accounting policies in this note for all other hedging relationships
where hedge accounting is not applied.
Read more in Note 4 for goals and policies in fi nancial risk management
including Volvo Group’s policies on hedging.
FINANCIAL INFORMATION 2014