Forward financial instruments and derivative financial instruments are measured at the period end. A provision is recognised in the income statement for any unrealised losses where the instruments are not designated as hedges (isolated open position).
Changes in value are taken to the balance sheet with a balancing entry in suspense accounts.
VINCI uses derivatives to hedge its exposure to market risks in respect of its financial debt and to cover its subsidiaries’ hedging needs.
At 31 December 2021, the market value of these financial instruments broke down as follows:
| (in € millions) | Market value | Notional |
|---|---|---|
| Interest rate instruments |
Interest rate instruments Market value
|
Interest rate instruments Notional
|
| - Interest rate swaps |
- Interest rate swaps Market value 239 |
- Interest rate swaps Notional 10,909 |
| - Cross currency swaps |
- Cross currency swaps Market value 15 |
- Cross currency swaps Notional 580 |
| Currency instruments |
Currency instruments Market value
|
Currency instruments Notional
|
| - Forward purchases |
- Forward purchases Market value - |
- Forward purchases Notional 1 |
| - Forward sales |
- Forward sales Market value (17) |
- Forward sales Notional 3,191 |
| - Cross currency swaps |
- Cross currency swaps Market value (122) |
- Cross currency swaps Notional 2,466 |
| Other hedging instruments |
Other hedging instruments Market value 76 |
Other hedging instruments Notional - |
At 31 December 2021, €43 million of provisions had been set aside for isolated open positions and mainly concerned the following:
Trade receivables are measured at their nominal value. An impairment allowance is recognised if there is a possibility of non-recovery of these receivables.
Receivables and payables denominated in foreign currency are measured at the closing rate. Any gains or losses arising on this translation are recorded in the balance sheet as translation differences. Provisions are taken in respect of any unrealised losses unless specific rules are laid down in the accounting regulations.
| Gross | Of which | ||
|---|---|---|---|
| (in € millions) | Within 1 year |
After 1 year |
|
| Receivables connected with investments in subsidiaries and affiliates | 13,894 | 238 | 13,657 |
| Non-current assets | 13,894 | 238 | 13,657 |
| Trade receivables and related accounts | 463 | 463 | |
| Other receivables | 176 | 176 | |
| Cash management current accounts of related companies | 206 | 206 | |
| Prepaid expenses | 403 | 403 | |
| Current assets | 1,248 | 1,248 | - |
| Total | 15,143 | 1,486 | 13,657 |
| Gross | Of which | |||
|---|---|---|---|---|
| (in € millions) | Within 1 year |
Between 1 and 5 years |
After 5 years |
|
| Bonds | 6,982 | 779 | 812 | 5,392 |
| Amounts owed to financial institutions | 13 | 13 | ||
| Cash management current accounts of related companies | 5,773 | 5 773 | ||
| Financial debt | 12,768 | 6,565 | 812 | 5,392 |
| Trade payables and related accounts | 45 | 45 | ||
| Tax, employment and social benefit liabilities | 50 | 50 | ||
| Liabilities related to non-current assets and related accounts | 2 | 2 | ||
| Other payables | 321 | 201 | 120 | |
| Deferred income | 415 | 415 | ||
| Other liabilities | 833 | 713 | 120 | - |
| Total | 13,601 | 7,278 | 932 | 5,392 |
