Ryanair 2008 Annual Report Download - page 62

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62
Foreign currency forward contracts are utilised in a number of ways: forecast Sterling pounds and euro
revenue receipts are converted into U.S. dollars to hedge against forecasted U.S. dollar payments principally
for jet fuel, insurance, capital expenditure and other aircraft related costs. These are classified as either cash
flow or fair value hedges of forecasted and committed U.S. dollar payments and have been determined to be
highly effective in offsetting variability in future cash flows and fair values arising from the fluctuation in the
U.S. dollar to Sterling pounds and euro exchange rates for the forecasted and committed U.S. dollar
purchases. No material level of ineffectiveness has been recorded for these foreign currency forward
contracts in the current year as the underlying hedged items and hedging instruments have been consistently
closely matched.
The Group also utilises jet fuel forward contracts to manage exposure to jet fuel prices. These are
used to hedge the Group’s forecasted fuel purchases, and are arranged so as to match against forecasted fuel
delivery and payment requirements. These are classified as cashflow hedges of forecast fuel payments and
have been determined to be highly effective in offsetting variability in future cash flows arising from
fluctuations in jet fuel prices. No material level of ineffectiveness has been recorded on these arrangements
in the current or prior year.
6 Inventories
At March 31,
2008 2007
1000 1000
Consumables............................................................................................................. 1,997 2,420
In the view of the directors, there are no material differences between the replacement cost of
inventories and the balance sheet amounts.
7 Other assets
At March 31,
2008 2007
1000 1000
Prepayments............................................................................................................ 121,555 94,243
Interest receivable................................................................................................... 10,014 9,028
Refundable deposits................................................................................................ 34,104 24,088
Value Added Tax recoverable................................................................................. 3,907 5,338
169,580 132,697
All amounts fall due within one year.
8 Trade receivables
At March 31,
2008 2007
1000 1000
Trade receivables ................................................................................................
............
34,315 23,600
Provision for impairment ................................................................
................................
(137) (188)
34,178 23,412
All amounts fall due within one year.