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g)
Non-current assets and liabilities classified as held for sale and discontinued
operations
The Group classifies under this heading in the consolidated balance sheet the non-current
assets and disposal groups whose carrying amount is expected to be recovered through a
sale transaction or liquidation rather than through continued use.
The non-current assets of discontinued operations are recognised at the lower of carrying
amount and market value.
The non-current liabilities of discontinued operations include the fair value of the liabilities
associated with the aforementioned assets which are expected to be settled at short term.
At year-end there aren’t assets or liabilities recorded for this concept in the Consolidated
Balance Sheet.
h)
Classification of financial assets and liabilities as current or non-current
In the accompanying consolidated balance sheet, financial assets and liabilities are
classified on the basis of the time in which it is estimated that they will be realised or
settled, i.e. financial assets and liabilities that are expected to be realised or settled over
the course of the company's normal business cycle or within no more than 12 months are
classified as current items, and those which do not meet these requirements are classified
as non-current items.
Deferred tax assets and liabilities are classified as non-current regardless of when they are
expected to be realised or settled.
i)
Hedging derivatives
All the derivatives held by the Group at 31 December 2014 were OTC derivatives, whose
prices are not quoted on organised futures and options markets and, therefore, it is
necessary to apply generally accepted valuation techniques, based on objective market
data, used in the measurement of financial instruments of this nature.
Foreign exchange hedges
The derivative financial instruments held by the Group companies are basically cash flow
hedges arranged to mitigate the exposure of the cash flows associated with external
production rights to fluctuations in the US dollar/euro exchange rate.
Foreign currency hedging contracts are valued using the spot exchange rate and the
forward interest rate curves of the related currencies. The “market” foreign currency
hedge is calculated at year-end and is compared with the price of the foreign currency
hedge arranged.
The Parent arranged interest rate swaps (IRSs) in order to fix the finance cost arising from
the floating rates applicable to each of the tranches of the syndicated financing that it had
arranged.