ING Direct 2011 Annual Report Download - page 162

Notes to the consolidated annual accounts of ING Group continued
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 2011, the fair value of outstanding derivatives designated under net investment hedge accounting was EUR –18 million
(2010: EUR –87 million), presented in the balance sheet as EUR 141 million (2010: EUR 81 million) positive fair values under assets and
EUR 159 million (2010: EUR 168 million) negative fair values under liabilities.
As at 31 December 2011, the fair value of outstanding non-derivatives designated under net investment hedge accounting was
EUR –335 million (2010: EUR 208 million).
Accounting ineffectiveness recognised in the profit and loss account for the year ended 31 December 2011 on derivatives and non-
derivatives designated under net investment hedge accounting was nil (2010: EUR 5 million).
25 DISCONTINUED OPERATIONS
The majority of the Latin American pensions, life insurance and investment management operations were disposed of in December 2011.
This transaction qualifies under IFRS as a discontinued operation. The results of the Latin American pensions, life insurance and investment
management operations that were divested for the year (and comparative years) and the result recognised on disposal are presented
below:
Results from discontinued operations
2011 2010 2009
Total income 711 779 837
Total expenses 567 512 634
Result before tax from discontinued operations 144 267 203
Tax related to current pre-tax gross result 30 51 103
Post-tax result from discontinued operations 114 216 100
Post-tax result on disposal of discontinued
operations (1) 995
Total net result from discontinued operations 1,109 216 100
(1) The tax effect on the result on disposal of discontinued operations is nil.
Reference is made to Note 30 ‘Companies acquired and companies disposed’ for more details on the disposal of the Latin American
pensions, life insurance and investment management operations.
The net cash flow incurred by the Latin American pensions, life insurance and investment management operations are as follows:
Net cash flow from discontinued operations
2011 2010 2009
Operating cash flow –13 –25 11
Investing cash flow –68 56 49
Financing cash flow –25 –6 –25
Net cash flow –106 25 35
The sales proceeds in cash of EUR 2,572 million is presented in the consolidated statement of cash flows under ‘Net cash flow from
investment activities – Disposals and redemptions: group companies’ and is not included in the table above.
160 ING Group Annual Report 2011