7.5.1.5 Impact of hedge accounting on the financial statements
in PLN millions, unless otherwise stated
The following table contains information on changes in the fair value of instruments, as well as corresponding changes in the fair value of hedged positions during the reporting period, being the basis for recognising the effective and ineffective portions of changes in the fair value of hedging instruments in the years 2021-2022 (excluding the tax effect).
In hedging relations, only the intrinsic value of the option is designated as a hedging instrument. The time value approximates zero in the horizon of a hedging relation. The hedge’s inefficiency recognised in the statements of profit or loss in the reporting periods 2021-2022 was immaterial.
| As at 31 December 2022 | from 1 January 2022 to 31 December 2022 |
from 1 January 2022 to 31 December 2022 |
As at 31 December 2021 | from 1 January 2021 to 31 December 2021 |
from 1 January 2021 to 31 December 2021 |
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|
Balance of other comprehensive income
due to cash flow hedging for relations |
Change in the value of hedged item | Change in the value of hedging instrument | Balance of other comprehensive income due to cash flow hedging for relations | Change in the value of hedged item | Change in the value of hedging instrument | |||
|
relation type
risk type instrument type – hedged item |
remaining in hedge accounting | for which hedge accounting was ceased | remaining in hedge accounting | for which hedge accounting was ceased | ||||
| Cash flow hedging | ||||||||
| Commodity risk (copper) | ||||||||
| Options – Sales revenue | (21) | (11) | (327) | 255 | (1 357) | – | 979 | (981) |
| intrinsic value | 152 | – | – | 325 | (1 027) | – | – | (976) |
| time value | (173) | (11) | – | (70) | (330) | – | – | (5) |
| Commodity risk (silver) | ||||||||
| Options – Sales revenue | 19 | – | 16 | (21) | 92 | 15 | (172) | 14 |
| intrinsic value | 30 | – | – | (16) | 163 | 12 | – | 172 |
| time value | (11) | – | – | (5) | (71) | 3 | – | (158) |
| Currency risk (USD) | ||||||||
| Options – Sales revenue | 402 | – | (183) | 403 | (1) | – | 115 | (192) |
| intrinsic value | 193 | – | – | 182 | 23 | – | – | (114) |
| time value | 209 | – | – | 221 | (24) | – | – | (78) |
| Loans – Sales revenue | – | (64) | – | – | – | (80) | – | – |
| intrinsic value | – | (64) | – | – | – | (80) | – | – |
| Currency-interest rate risk | ||||||||
| Options – Sales revenue | (569) | – | 154 | (137) | (431) | – | 406 | (371) |
| intrinsic value | (569) | – | – | (137) | (431) | – | – | (371) |
| Options – Finance income/costs | 315 | – | (181) | 152 | 162 | – | (332) | 300 |
| intrinsic value | 315 | – | – | 152 | 162 | – | – | 300 |
| Total, including: | 146 | (75) | (521) | 652 | (1 535) | (65) | 996 | (1 230) |
| Total intrinsic value | 121 | – | – | 506 | (1 110) | (68) | – | (989) |
| Total time value | 25 | (75) | – | 146 | (425) | 3 | – | (241) |
The table below presents information on the impact of hedge accounting on profit or loss and other comprehensive income (excluding the tax effect).
| from 1 January 2022 to 31 December 2022 | from 1 January 2021 to 31 December 2021 | |||
|
relation type
risk type instrument type |
Profits or (losses) due to hedging recognised in other comprehensive income | Amount reclassified from other comprehensive income to the statement of profit or loss as a reclassification adjustment, due to realisation of a hedged item in the period | Profits or (losses) due to hedging recognised in other comprehensive income | Amount reclassified from other comprehensive income to the statement of profit or loss as a reclassification adjustment, due to realisation of a hedged item in the period |
| Cash flow hedging | ||||
| Commodity risk (copper) | ||||
| Options* | 800 | (525) | (2 047) | (1 903) |
| Commodity risk (silver) | ||||
| Options* | 26 | 114 | (11) | (30) |
| Currency risk (USD) | ||||
| Options* | 357 | (46) | (260) | (72) |
| Loans** | – | (16) | – | (16) |
| Currency-interest rate risk | ||||
| CIRS *** | 56 | 41 | (113) | (43) |
| Total | 1 239 | (432) | (2 431) | (2 064) |
* revenues from contracts with customers, other operating income and (costs),
** revenues from contracts with customers,
*** revenues from contracts with customers, other finance income and (costs).
The following table contains information on changes in other comprehensive income (excluding the tax effect) in the period in connection with the application of hedge accounting in 2021 and 2022.
| Other comprehensive income due to cash flow hedging | 2022 | 2021 | ||||
| Effective value* | Cost of hedging** | Total | Effective value* | Cost of hedging** | Total | |
| Other comprehensive income – transactions hedging against commodity and currency risk – as at 1 January | (1 178) | (422) | (1 600) | (735) | (498) | (1 233) |
| Impact of measurement of hedging transactions (effective part) | 1 124 | 115 | 1 239 | (2 128) | (303) | (2 431) |
| Reclassification to profit or loss due to realisation of hedged item | 122 | 310 | 432 | 1 685 | 379 | 2 064 |
| Other comprehensive income – transactions hedging against commodity and currency risk – as at 31 December | 68 | 3 | 71 | (1 178) | (422) | (1 600) |
** Time value of option + CCBS (Cross Currency Basis Swap).