• Independent auditor’s report
• Consolidated income statement
• Consolidated statement of comprehensive income
• Consolidated and Parent Company balance sheets
• Consolidated statement of changes in equity
• Parent Company statement of changes in equity
• Consolidated and Parent Company statement of cash flows
• Accounting policies
• Notes to the financial statements
• Group financial history
• Shareholders’ information

Notes to the financial statements

17 Financial assets

Derivative financial instruments

Consolidated		Note		2014 £m		2013 £m
Current
Cross currency swaps (cash flow hedges)				–		9.6
Forward currency contracts (cash flow hedges)		31		0.4		–
				0.4		9.6
Non-current
Option to sell 20% holding in Wexford Creamery Limited		31		1.6		1.6
Cross currency swaps (cash flow hedges)		31		5.4		12.9
				7.0		14.5
Company				2014 £m		2013 £m
Current
Cross currency swaps (cash flow hedges)		31		–		9.6
Non-current
Cross currency swaps (cash flow hedges)		31		5.4		12.9

All derivative financial instruments are fair valued at each balance sheet date and all, with the exception of the option to sell a 20% holding in Wexford Creamery Limited (‘WCL’), comprise Level 2 valuations under IFRS 7: Financial Instruments – Disclosures, namely, that they are based on inputs observable directly (from prices) or indirectly (derived from prices).

The WCL options comprise call and put options over 20% of the company for a price of €3.6 million adjusted for 20% of WCLs post-tax profits/losses from June 2010 until the date of exercise. This comprises a Level 3 valuation, namely that it is not based on inputs observable directly or indirectly. Management has valued this option by comparing the current equity accounted carrying value of the 20% holding with the estimated present value of consideration received from the exercise of the option. The difference between these amounts comprises the option value of £1.6 million at 31 March 2014. The principal input assumptions in valuing these options are (i) estimated future profits of WCL which have been based upon best available budgets and forecasts (ii) an appropriate post-tax discount rate of 6% and (iii) an option exercise date of 2018. Over the period until exercise of these options, any movement in the fair value of these instruments is charged/credited to the income statement.

There has been no material movement in the fair value of the WCL options between recognition in June 2010 and 31 March 2014.