Income Statement Disclosures


Derivative financial instruments are used to hedge interest rate, foreign exchange, and commodities price risks. These derivative financial instruments are explained in note 40 "Financial Risk Management".

The measurement of the derivative financial instruments resulted in a total expense of 7.1 million euros in the financial year (previous year: 13.9 million euros). This was due primarily to the fact that stand-alone currency derivatives are marked to market.

Of the result from the measurement of derivative financial instruments, -7.8 million euros is due to the fair value measurement of RIF's stand-alone currency derivatives. These are used to hedge foreign currency loans. Offsetting currency translation gains or losses from these loans are reported under the other financial result.

Furthermore, the result from the measurement of derivative financial instruments includes gains of 0.7 million euros from the measurement of stand-alone interest rate swaps in Hungary. The swaps matured as at 31 October 2018.

Measurement gains and losses from stand-alone derivatives concluded to hedge purchases of goods in foreign currencies or to hedge foreign currency liabilities from hotel purchases are not reported here but rather under other operating expenses and income.