NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 42 FINANCIAL INSTRUMENTS (CONT’D) (iv) Hedge accounting (cont’d) Net investment hedges (cont’d) Change in value used for calculating hedge ineffectiveness Foreign currency translation reserve Balances remaining in the foreign currency translation reserve from hedging relationships for which hedge accounting is no longer applied $’000 $’000 $’000 2022 Net investments in certain foreign subsidiaries whose functional currencies are denominated in United States Dollar, Euro, Renminbi, Japanese Yen and Sterling Pound 10,694 4,007 – 2021 Net investments in certain foreign subsidiaries whose functional currencies are denominated in United States Dollar, Euro, Renminbi, Japanese Yen and Sterling Pound 4,939 17,015 – Cash flow hedges At 31 December 2022, the Group held certain interest rate swaps to hedge exposures to changes in interest rates. Notional amount Carrying amount – Assets/(Liabilities) Line item in the statement of financial position where the hedging instrument is included Changes in the value of the hedging instrument recognised in OCI Hedge ineffectiveness recognised in profit or loss Line item in profit or loss that includes hedge ineffectiveness Amount reclassified from hedging reserve to profit or loss Fixed interest rate Year of maturity $’000 $’000 $’000 $’000 Group Cash flow hedges 2022 Interest rate risk – Interest rate swaps $703,300,000 equivalent 18,917 Derivative financial assets 18,917 – Not applicable – 2.48% to 3.06% 2025 to 2026 – Interest rate swaps $137,652,000 equivalent (645) Derivative financial liabilities (645) – Not applicable – 3.46% 2025 At 31 December 2021, the Group did not designate any financial derivatives as hedging instruments for cash flow hedges. CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2022 FINANCIALS 240 241
RkJQdWJsaXNoZXIy ODIwNTc=