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Hedging activities
The Group uses derivative financial instruments to hedge
the interest rate and currency risk. All derivative financial
instruments are measured at fair value. The following
table gives the remaining term of the outstanding
derivative financial instruments at closing date. The
amounts given in this table are the notional amounts.
IN ’000 €
2014
< 1YEAR
1-5YEARS
> 5YEARS
TOTAL
Foreign currency
Foreign exchange forward contracts
1 200
1 200
IN ’000 €
2013
< 1YEAR
1-5YEARS
> 5YEARS
TOTAL
Interest
Interest rate swaps
5 000
5 000
Foreign currency
Foreign exchange forward contracts
1 800
1 800
Fair value
Fair value is the amount at which an asset can be traded
or a liability settled between well-informed, willing parties,
following the “arm’s length” principle.
The following table discloses the clean fair value and the
carrying amount of the main interest-bearing financial
loans and borrowings (measured at amortized cost).
IN ’000 €
2013
2014
CARRYING
AMOUNT
FAIRVALUE
CARRYING
AMOUNT
FAIRVALUE
Public bond – fixed interest rate
75 000
79 128
75 000
83 459
Transaction costs refinancing
-747
-747
-538
-538
Lease liabilities – fixed interest rate
7 996
8 060
15 104
15 203
Interest-bearing loans – variable interest rate
25 000
25 000
46 000
46 000
Bank overdrafts
581
581
470
470
TOTAL
107 830
112 022
136 036
144 594
The fair value of the public bond with fixed interest rate
was measured by discounting the future cash flows based
on an interest rate of 2.33% (2013: 3.71%).
An interest rate of 2.32% for the leased projectors and
3.31% for the leased cinema in Groningen (the Netherlands)
was used to measure the fair value of the lease liabilities by
discounting the future cash flows (2013: 3.13% for the
leased projectors).
The fair value of the other non-derivative financial assets
(loans and receivables) and liabilities (measured at amor-
tized cost) is equal to the carrying amount.
The following table provides the nominal or contractual
amounts and the clean fair value of all outstanding deriva-
tive financial instruments (cash flow hedging instruments).
The nominal or contractual amounts reflect the volume of
the derivative financial instruments outstanding at the
balance sheet date. As such they represent the Group’s risk
on these transactions.
100
05 / FINANCIAL REPORT
KINEPOLIS GROUP
ANNUAL REPORT 2014