120
IMI plc
SECTION 4 – CAPITAL STRUCTURE AND FINANCING COSTS
Continued
4.4.6 Fair value
Financial instruments included in financial statements are measured at either fair value or amortised cost. The measurement of this fair value can in some cases
be subjective, and can depend on the inputs used in the calculations. The Group generally calculates its own fair values using comparable observed market
prices and a valuation model using the respective and relevant market data for the instrument being valued.
4.4.6.1 Total financial assets and liabilities
The table below sets out the Group’s accounting classification of each class of financial assets and liabilities, and their fair values at 31 December 2014
and 31 December 2013. Under IAS39, all derivative financial instruments not in a hedge relationship are classified as derivatives at fair value through the
income statement. The Group does not use derivatives for speculative purposes and transacts all derivatives with suitable investment grade counterparties.
All transactions in derivative financial instruments are undertaken to manage the risks arising from underlying business activities.
Other Available for
At
Total
Designated derivatives sale assets amortised
carrying Fair value
at fair value at fair value at fair value
cost
value if different
£m
£m
£m
£m
£m
£m
2014
Cash and cash equivalents
43.8
43.8
Bank overdrafts
(23.0)
(23.0)
Borrowings due within one year
(2.0)
(2.0)
Borrowings due after one year
(218.8)
(218.8)
(248.7)
Trade and other payables*
(361.4)
(361.4)
Trade receivables
318.0
318.0
Investments
19.0
7.9
26.9
Other current financial assets/(liabilities)
Derivative assets**
8.1
2.4
10.5
Derivative liabilities***
(9.2)
(9.2)
Total
8.1
(6.8)
62.8
(279.3)
(215.2)
2013
Cash and cash equivalents
99.9
99.9
Bank overdrafts
(9.6)
(9.6)
Borrowings due within one year
(19.0)
(61.8)
(80.8)
(80.4)
Borrowings due after one year
(208.9)
(208.9)
(238.3)
Trade and other payables*
(353.6)
(353.6)
Trade receivables
293.6
293.6
Investments
20.2
20.2
Other current financial assets/(liabilities)
Derivative assets**
16.5
5.9
22.4
Derivative liabilities***
(3.1)
(3.1)
Total
(2.5)
2.8
120.1
(340.3)
(219.9)
* Trade and other payables exclude corporation tax and other tax liabilities and include liabilities of £15.4m (2013: £24.2m) falling due after more than one year;
£10.2m in 1-2 years, £2.0m in 2-3 years, £2.0m in 3-4 years, £1.2m in 4-5 years (2013: £10.1m in 1-2 years, £2.8m in 2-3 years, £2.0m in 3-4 years, £9.3m
in 4-5 years)
** Includes £nil (2013: £0.2m) falling due after more than one year.
*** Derivative liabilities include liabilities of £0.4m (2013: £0.3m) falling due after more than one year: £nil in 1-2 years and £nil in 2-3 years (2013: £nil in 1-2 yrs
and £0.3m in 2-3 yrs). Derivative liabilities designated at fair value represent the fair value of net investment hedge derivatives. The increase in value of net
investment hedge derivatives in the year of £3.6m (2013: £3.4m) is shown in the consolidated statement of comprehensive income.
There are no other financial liabilities included within payables disclosed above and finance leases disclosed in section 4.4.5.2.
