ING Direct 2008 Annual Report Download - page 144

ING Group Annual Report 2008
142
2.1 Consolidated annual accounts
Additional information to the consolidated balance sheet of ING Group (continued)
As at 31 December 2008, the fair values of outstanding derivatives designated under cash flow hedge accounting was EUR –318 million
(2007: EUR 229 million), presented in the balance sheet as EUR 5,771 million (2007: EUR 3,417 million) positive fair values under assets
and EUR 6,089 million (2007: EUR 3,188 million) negative fair values under liabilities.
As at 31 December 2008 and 31 December 2007, there were no non-derivatives designated as hedging instruments for cash flow hedge
accounting purposes.
Included in Interest income and interest expense on non-trading derivatives is EUR 3,082 million (2007: EUR 1,533 million) and
EUR 2,744 million (2007: EUR 1,242 million), respectively, relating to derivatives used in cash flow hedges.
Hedges of net investments in foreign operations
ING Group’s net investment hedges principally consist of derivatives (including currency forwards and swaps) and non-derivative
financial instruments such as foreign currency denominated funding that are used to protect against foreign currency exposures
on foreign subsidiaries.
Gains and losses on the effective portions of derivatives designated under net investment hedge accounting are recognised in
Shareholders’ equity. The balance in equity is recognised in the profit and loss account when the related foreign subsidiary is disposed.
The gains and losses on ineffective portions are recognised immediately in the profit and loss account.
As at 31 December 2008, the fair values of outstanding derivatives designated under net investment hedge accounting was
EUR 300 million (2007: EUR –71 million), presented in the balance sheet as EUR 670 million (2007: EUR 281 million) positive fair
values under assets and EUR 370 million (2007: EUR 352 million) negative fair values under liabilities.
As at 31 December 2008, the fair values of outstanding non-derivatives designated under net investment hedge accounting was
EUR –881 million (2007: EUR –1,318 million), presented in the balance sheet as negative fair values under liabilities. Non-derivatives
designated as hedging instruments consist mainly of loan agreements.
Accounting ineffectiveness recognised in the profit and loss account for the year ended 31 December 2008 on derivatives and non-
derivatives designated under net investment hedge accounting was EUR –6 million (2007: EUR –14 million).