Unilever 2015 Annual Report Download - page 134

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17A. FINANCIAL ASSETS ONTINUED
ash and cash equvalents reconclaton to the cash flow statement
 mllon
2015
 mllon
2014
ash and cash equvalents per balance sheet 2,302 2,151
Less bank overdrafts (174) (241)
ash and cash equvalents per cash flow statement 2,128 1,910
Approxmately 18 bllon (or 79%) of the roup’s cash and cash equvalents are held n foregn subsdares whch repatrate dstrbutable
reserves on a regular bass For most countres ths s done through dvdends free of tax In a few countres we face cross-border foregn
exchange controls and/or other legal restrctons that nhbt our ablty to make these balances avalable n any means for general use by
the wder busness The amount of cash held n these countres was 284 mllon (2014 452 mllon) The cash wll generally be nvested
or held n the relevant country and, gven the other captal resources avalable to the roup, does not sgnfcantly affect the ablty of the
roup to meet ts cash oblgatons
17B. CREDIT RISK
redt rsk s the rsk of fnancal loss to the roup f a customer or counter-party fals to meet ts contractual oblgatons Addtonal
nformaton n relaton to credt rsk on trade recevables s gven n note 13 These rsks are generally managed by local controllers
redt rsk related to the use of treasury nstruments s managed on a roup bass Ths rsk arses from transactons wth fnancal
nsttutons nvolvng cash and cash equvalents, deposts and dervatve fnancal nstruments The maxmum exposure to credt rsk
at the reportng date s the carryng value of each class of fnancal assets To reduce ths rsk, Unlever has concentrated ts man
actvtes wth a lmted number of counter-partes whch have secure credt ratngs Indvdual rsk lmts are set for each counter-party
based on fnancal poston, credt ratng and past experence redt lmts and concentraton of exposures are actvely montored by the
roup’s treasury department Nettng agreements are also put n place wth Unlever’s prncpal counter-partes In the case of
a default, these arrangements would allow Unlever to net assets and labltes across transactons wth that counter-party To further
reduce the roup’s credtexposures on dervatve fnancal nstruments, Unlever has collateral agreements wth Unlever’s prncpal
counter-partes n relaton to dervatve fnancal nstruments Under these arrangements, counter-partes are requred to depost
securtes and/or cash as a collateral for ther oblgatons n respect of dervatve fnancal nstruments At 31 December 2015 the
collateral held by Unlever under such arrangements amounted to30 mllon (201424 mllon), of whch 30 mllon (2014 24 mllon)
was n cash, and nl (2014 nl) was n the form of bond securtes The non-cash collateral has not been recognsed as an asset n the
roup’s balance sheet
Further detals n relaton to the roup’s exposure to credt rsk are shown n note 13 and note 16A
18 FINANIAL INSTRUMENTS FAIR VALUE RISK
The roup s exposed to the rsks of changes n far value of ts fnancal assets and labltes The followng table summarses the far
values and carryng amounts of fnancal nstruments
Far values of fnancal assets and fnancal labltes
 mllon
Far value
2015
 mllon
Far value
2014
 mllon
arryng
amount
2015
 mllon
arryng
amount
2014
Fnancal assets
ash and cash equvalents 2,302 2,151 2,302 2,151
Held-to-maturty nvestments 144 89 144 89
Loans and recevables 303 208 303 208
Avalable-for-sale fnancal assets 641 671 641 671
Fnancal assets at far value through proft or loss
Dervatves 230 296 230 296
Other 123 122 123 122
3,743 3,537 3,743 3,537
Fnancal labltes
Preference shares (132) (108) (68) (68)
Bank loans and overdrafts (1,067) (1,119) (1,064) (1,114)
Bonds and other loans (13,509) (11,417) (12,703) (10,573)
Fnance lease credtors (217) (224) (195) (199)
Dervatves (124) (350) (124) (350)
Other fnancal labltes (489) (418) (489) (418)
(15,538) (13,636) (14,643) (12,722)
127Unilever Annual Report and Accounts 2015 Financial statements