Unilever 2015 Annual Report Download - page 132

16C. DERIVATIVES AND HEDGING ONTINUED
MASTER NETTIN OR SIMILAR AREEMENTS
A number of legal enttes wthn our roup enter nto dervatve transactons under Internatonal Swap and Dervatves Assocaton
(ISDA) master nettng agreements In general, under such agreements the amounts owed by each counter-party on a sngle day n
respect of all transactons outstandng n the same currency are aggregated nto a sngle net amount that s payable by one party to the
other In certan crcumstances such as when a credt event such as a default occurs, all outstandng transactons under the agreement
are termnated, the termnaton value s assessed and only a sngle net amount s payable n settlement of all transactons
The ISDA agreements do not meet the crtera for offsettng the postve and negatve values n the consoldated balance sheet
Ths s because the roup does not have any currently legally enforceable rght to offset recognsed amounts, between varous roup and
bank afflates, because the rght to offset s enforceable only on the occurrence of future credt events such as a default
The column ‘Related amounts not set off n the balance sheet – Fnancal nstruments’ shows the nettng mpact of our ISDA agreements,
assumng the agreements are respected n the relevant ursdcton
(A) FINANIAL ASSETS
The followng fnancal assets are subect to offsettng, enforceable master nettng arrangements and smlar agreements
Related amounts not set off
n the balance sheet
As at 31 December 2015
 mllon
ross amounts of
recognsed
fnancal assets
 mllon
ross amounts of
recognsed
fnancal labltes
set off n the
balance sheet
 mllon
Net amounts of
fnancal assets
presented n the
balance sheet
 mllon
Fnancal
nstruments
 mllon
ash collateral
receved
 mllon
Net amount
Dervatve fnancal assets 458 (155) 303 (153) (30) 120
As at 31 December 2014
Dervatve fnancal assets 773 (356) 417 (246) (24) 147
(B) FINANIAL LIABILITIES
The followng fnancal labltes are subect to offsettng, enforceable master nettng arrangements and smlar agreements
Related amounts not set off
n the balance sheet
As at 31 December 2015
 mllon
ross amounts of
recognsed
fnancal
labltes
 mllon
ross amounts of
recognsed
fnancal labltes
set off n the
balance sheet
 mllon
Net amounts of
fnancal
labltes
presented n the
balance sheet
 mllon
Fnancal
nstruments
 mllon
ash collateral
pledged
 mllon
Net amount
Dervatve fnancal labltes 349 (155) 194 (153) –41
As at 31 December 2014
Dervatve fnancal labltes 870 (356) 514 (246) – 268
17 INVESTMENT AND RETURN
ASH AND ASH EQUIVALENTS
ash and cash equvalents n the balance sheet nclude deposts, nvestments n money market funds and hghly lqud nvestments
To be classfed as cash and cash equvalents, an asset must
• be readly convertble nto cash
• have an nsgnfcant rsk of changes n value and
• have a maturty perod of three months or less at acquston
ash and cash equvalents n the cash flow statement also nclude bank overdrafts and are recorded at amortsed cost
OTHER FINANIAL ASSETS
Other fnancal assets are frst recognsed on the trade date At that pont, they are classfed as
• held-to-maturty nvestments
• loans and recevables
• avalable-for-sale fnancal assets or
• fnancal assets at far value through proft or loss
125Unilever Annual Report and Accounts 2015 Financial statements