Accounting Policy
Other reserves include the cash flow hedge reserve, remeasurement of post-employment benefit obligations and the cumulative currency translation reserve.
The cash flow hedge reserve contains the effective part of the accumulated change in the fair value of cash flow hedges, net of tax, related to the foreign currency forwards and interest rate derivatives. See note 24 for more details on the Group's derivatives and hedge accounting. Transfer from the cash flow hedge reserve to the carrying value of inventory at initial recognition, is presented separately from consolidated Other Comprehensive Income.
Remeasurement of post-employment benefit obligations contains remeasurement of gains or losses related to both defined benefit obligations and fair value of plan assets arising from experience adjustments and changes in actuarial assumptions. See note 25 for more details on the Group's post-employment benefit obligations.
The cumulative currency translation reserve includes all exchange differences resulting from the translation of the financial statements of foreign entities.
The movements in Other Reserves can be specified as follows:
in thousands of EUR | Cash flow | Remeasurement of post-employment benefit obligations | Cumulative currency translation reserve | Total |
|---|---|---|---|---|
At 1 January 2018 | - 5,061 | - 14,217 | - 129,684 | - 148,962 |
Other comprehensive income | 1,663 | 4,862 | - 15,442 | - 8,917 |
Hedge results transferred to the carrying value of inventory purchased during the year | 831 | - | - | 831 |
At 31 December 2018 | - 2,567 | - 9,355 | - 145,126 | - 157,048 |
At 1 January 2019 | - 2,567 | - 9,355 | - 145,126 | - 157,048 |
Other comprehensive income | - 3,269 | - 17,266 | 13,857 | - 6,678 |
Hedge results transferred to the carrying value of inventory purchased during the year | - 3,896 | - | - | - 3,896 |
At 31 December 2019 | - 9,732 | - 26,621 | - 131,269 | - 167,622 |
The movement in Remeasurement of post-employment benefits obligations during 2019 is mainly following from a decrease in discount rates in Switzerland.
The movement in the cash flow hedge reserve per risk category can be specified as follows:
Interest risk | Currency risk | Total | Attributable to the equity holders | Non- controlling interest | |
|---|---|---|---|---|---|
At 1 January 2018 | - 2,353 | - 2,447 | - 4,800 | - 5,061 | 261 |
Changes in fair value | - 6,160 | 5,531 | - 629 | - 686 | 57 |
Reclassified to profit or loss | 3,947 | - 1,026 | 2,921 | 2,914 | 7 |
Income tax | 553 | - 1,139 | - 586 | - 584 | - 2 |
Exchange differences | - | 16 | 16 | 19 | - 3 |
Other comprehensive income | - 1,660 | 3,382 | 1,722 | 1,663 | 59 |
Amount transferred to the cost of inventory | - | 761 | 761 | 1,093 | - 332 |
Income tax | - | - 192 | - 192 | - 262 | 70 |
- | 569 | 569 | 831 | - 262 | |
At December 2018 | - 4,013 | 1,504 | - 2,509 | - 2,567 | 58 |
At 1 January 2019 | - 4,013 | 1,504 | - 2,509 | - 2,567 | 58 |
Changes in fair value | - 8,931 | 1,504 | - 7,427 | - 7,415 | - 12 |
Reclassified to profit or loss | 3,170 | 3 | 3,173 | 3,165 | 8 |
Income tax | 1,472 | - 451 | 1,021 | 1,012 | 9 |
Exchange differences | - | - 29 | - 29 | - 31 | 2 |
Other comprehensive income | - 4,289 | 1,027 | - 3,262 | - 3,269 | 7 |
Amount transferred to the cost of inventory | - | - 5,503 | - 5,503 | - 5,289 | - 214 |
Income tax | - | 1,428 | 1,428 | 1,393 | 35 |
- | - 4,075 | - 4,075 | - 3,896 | - 179 | |
At December 2019 | - 8,302 | - 1,544 | - 9,846 | - 9,732 | - 114 |