Carphone Warehouse 2015 Annual Report Download - page 132
Download and view the complete annual report
Please find page 132 of the 2015 Carphone Warehouse annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136 -
137 -
138 -
139 -
140 -
141 -
142 -
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
 |
 |
Dixons Carphone plc Annual Report and Accounts 2014/15
Financial statements
Notes to the Group financial statements
130
25 Financial risk management and derivative financial instruments
Financial instruments that are measured at fair value in the financial statements require disclosure of fair value measurements
by level based on the following fair value measurement hierarchy:
• Level 1 – quoted prices (unadjusted) in active markets for identical assets and liabilities;
• Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly
(that is, as prices) or indirectly (that is, derived from prices); and
• Level 3 – inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
The significant inputs required to fair value all of the Group’s financial instruments are observable. The Group only holds Level 2
financial instruments. There have also been no transfers of assets or liabilities between levels of the fair value hierarchy.
Fair values have been arrived at by discounting future cash flows, assuming no early redemption, or by revaluing forward
currency contracts and interest rate swaps to period end market rates as appropriate to the instrument.
The directors consider that the book value of financial assets and liabilities recorded at amortised cost and their fair value are
approximately equal.
The book value and fair value of the Group’s financial assets, liabilities and derivative financial instruments are as follows:
2 Ma
y
2015
£million
29 March
2014
£million
Cash and cash equivalents 163 283
Trade and other receivables excluding derivative financial assets 1,086 975
Derivative financial (liabilities) / assets (11) 2
Loans to Virgin Mobile France (see note 24) — 18
Trade and other payables (1,933) (844)
Finance leases (91) (1)
Deferred consideration (31) (50)
Loans and other borrowings (385) (290)
a) Financial risk management policies
The Group’s activities expose it to certain financial risks including market risk (such as foreign exchange risk and interest rate
risk), credit risk and liquidity risk. The Group’s treasury function, which operates under treasury policies approved by the Board,
uses certain financial instruments to mitigate potentially adverse effects on the Group’s financial performance from these risks.
These financial instruments consist of bank loans and deposits, spot and forward foreign exchange contracts, foreign exchange
swaps and interest rate swaps.
Throughout the period under review, in accordance with Group policy, no speculative use of derivatives, foreign exchange or
other instruments was permitted. No contracts with embedded derivatives have been identified and, accordingly, no such
derivatives have been accounted for separately.