49 / 140
The detail, by maturity, of the long-term balances drawn down at 31 December 2015 is as
follows:
Thousands of euros
2017
2018
2019
Total
Syndicated financing
27,000
27,000
73,437
127,437
The detail, by maturity, of the long-term balances drawn down at 31 December 2014 is as
follows:
Thousands of euros
2016
2017
Total
Syndicated financing
62,331
64,000
126,331
14. Derivative financial instruments
Foreign currency hedges
The Group uses currency derivatives to hedge significant future transactions and cash flows
in US dollars and mitigate the foreign currency risk.
They relate, in all cases, to cash flow
hedges for payment obligations in US dollars relating to the purchase of broadcasting rights
(the underlying), in which the exposure to the EUR/USD exchange rate is hedged (hedged
risk), which gives rise to a potential change in the cash flows payable in euros for
broadcasting rights. This change affects the profit or loss of the period(s) in which the
planned payment transaction has not been performed. The Group applies hedge accounting
and documents the hedging relationships and measures their effectiveness as required by
IAS 39.
In general, on assumption of the commitment to purchase the broadcasting rights, the Group
arranges a foreign currency derivative that expires on the payment dates of the accounts
payable to suppliers. A hedging relationship is arranged that covers the entire term of the
derivative, i.e. the derivative is considered to be a hedging instrument from its arrangement
(when the commitment to purchase the broadcasting rights is assumed) up to the date of
payment of the contracted broadcasting rights. Changes in the fair value of the derivative
are recognised temporarily in equity up to the beginning of the term of the right, and are
finally reclassified from equity to profit or loss in order to offset the impact on profit or loss
of changes in the value of the hedged item, as detailed as follows:
- At the beginning of the term of the right (which is the date on which Atresmedia
may use the broadcasting rights and, therefore, recognises the acquisition thereof
under “Inventories” in the balance sheet) the changes in fair value from arrangement
up to that date which have been recognised in equity as the effective portion, are
included as an increase in/reduction of the carrying amount at which the inventories
were recognised.
- Once the inventories and the related accounts payable to suppliers are recognised,
the changes in fair value of the foreign currency derivatives and in the value of the
accounts payable are recognised in the statement of profit or loss at each accounting
close.