Annual Report and Consolidated Accounts 2015
Fair value hedge
In an operation to hedge the exposure to fair
value of an asset or liability (“fair value hedge”)
determined as effective hedges, the fair value
changes are recognised in the income statement
jointly with the fair value changes of the risk
component of the hedged item.
Cash flow hedge
In an operation to hedge the exposure to future
cash-flows of an asset or liability (“cash-flow
hedge”), the effective part of the fair value chang-
es in the hedging derivative are recognizes in eq-
uity; the ineffective part of the hedging is recog-
nized in the income statement when it occurs.
Net investment hedge
Currently there are no foreign operational units
(subsidiaries) in currencies other than the euro,
therefore the Group is not exposed to foreign
currency exchange-rate risks.
The Group has well identified the nature of the
involved risks, guarantees through its software
that each hedge instrument is followed under
the Group’s risk policy, recording thorough and
formally the hedges relationships; the hedges
goal and strategy; classification of the hedges
relationship; description of the nature of the risk
that’s being cover; identification of the hedge in-
strument and covered item; description of initial
measure and future effectiveness of the hedge;
identification of the excluded, if any, part of the
hedge instrument.
The Group will consider discontinued an hedge
instrument when it is sold, expires or is realised;
the hedge ceases to fulfil the hedge accounting
criteria; for the cash flow hedge the expected
transaction in unlikely or unexpected; the Group
cancels the hedge instruments for managing
reasons.
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