Ryanair 2005 Annual Report Download - page 57

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18 FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
The fair value of Ryanair’s financial instruments at March 31, 2005 and March 31, 2004 was as follows:
2005 2005 2004 2004
Carrying amount Fair value Carrying amount Fair value
000 000 000 000
On balance sheet instruments
Cash on hand 65,872 65,872 25,778 25,778
Liquid resources 1,547,771 1,547,771 1,231,572 1,231,572
Short term borrowings (7,938) (7,938) (345) (345)
Long term debt (1,414,847) (1,457,124) (952,982) (997,685)
Off balance sheet instruments
Forward starting interest rate swaps (loss) --- (44,875)
Interest rate swaps (loss) - (151,926) - (90,420)
US dollar currency forward contracts gain/(loss)* - 1,785 - (36,181)
Sterling currency forward contracts gain - 666 --
Aircraft fuel price contracts gain -5,851 - 16,723
*This includes fair value hedge gain amounting to 2.7m (2004: loss 21.5m)
All of the off balance sheet instruments shown above were held for hedging purposes. The fair value of the off balance sheet
instruments in the table above equates to the net unrealised gains and losses on these instruments which were unrecognised at
March 31, 2005 and March 31, 2004.
On the basis of no movement in fuel prices and exchange rates, these unrealised gains and losses would impact on Ryanair’s profit
and loss account in the following years:
Maturing in Maturing in Total Maturing in Total
Fiscal 2007 Fiscal 2006 Fiscal 2005 Fiscal 2005 Fiscal 2004
Off balance sheet instruments 000 000 000 000 000
US dollar currency forward contracts gain/(loss) 563 1,222 1,785 (36,181) (36,181)
Sterling currency forward contracts gain - 666 666 --
Aircraft fuel price contracts gain - 5,851 5,851 16,723 16,723
563 7,739 8,302 (19,458) (19,458)
Unrealised losses on the group’s interest rate swaps of 151.9m (2004: 135.3m) will be amortised to the profit and loss account
over the period from date of draw-down of the long term debt and operating leases (typically 7 to 12 years from the year end), in
addition to the related interest and rental expense.
(Continued)
Notes 47
ANNUAL REPORT & FINANCIAL STATEMENTS 2005