Annual Report 2010

2010 ANNUAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FORTHE YEARENDED 31 DECEMBER2010 (in euros) Up to 1 year 1-5 years 5+ years 2010 Currency option contracts -1045462 63489 Currency forward contracts 152 980 -25 363 Currency swap contract 224 235 Euro-interes! rate swap contract -231 620 -290 100 Total -899 867 -251 974 2009 Currency option contracts -1 936 339 -3 544 210 Currency forward contracts 420 549 Interes! rate swap contract -192 499 Euro-interes! rate swap contract -392 038 -886 295 Total -2 100 327 -4430 505 b) Fair value estimation The fair value ot publicly traded derivatives and available-for-sale securities is based on quoted market prices at the reporting date. The fair value ot euro-interes! swaps is calculated as the present value ot the estimated future cash flows. The fair value ot currency swap contracts, forwards and options is determined using forward exchange market rates at the reporting date. In assessing the fair value ot non-traded derivatives and other financial instruments, the Group uses a variety ot methods and market assumptions that are based on market conditions existing at the reporting date. Other techniques, mainly estimated discounted value ot future cash flows, are used to determine fair value for the remaining financial instruments. The face values less any estimated credit adjustments for financial assets and liabilities with a maturity ot less than one year are assumed to approximate their fair values. The fair value ot financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interes! rate available to the Group for similar financial instruments. Fair value measurement in !he Statement ofFinancial Position The Group recognised financial instruments, which are upon initial recognition carried at fair value. The financial instruments comprise financial liabilities on the remeasurement ot derivatives carried at fair value through profit or loss (FVTPL) in the amount ot EUR 2 375 thousand as at 31 December 2010 and financial assets on the remeasurement ot derivatives carried at fair value through profit or loss (FVTPL) in the amount ot EUR 570 thousand as at 31 December 2010 (2009: derivative financial liabilities amounted to EUR 7 148 thousand, derivative financial assets amounted to EUR 1 364 thousand). Additionally, the Group recognised receivables trom the revaluation ot hedging financial derivatives, which are upon initial recognition carried at fair value through equity in the amount ot EUR 653 thousand as at 31 December 2010 (2009: liabilities in the amount ot EUR 743 thousand). The fair value measurement ot the recognised financial instruments refers only to those that are derived trom inputs other th an quoted prices (unadjusted) in active markets for identical assets or liabilities that are observable on the market for the asset or liability, directly or indirectly (Level 2 hierarchy as applied by IFRS 7). 30. RELATED PARTY TRANSACTIONS 30.1. Members ot statutory, supervisory and other bodies Remuneration paid to the members ot the Group's statutory, supervisory and other bodies for the year ended 31 December 201 O amounted to EUR 2 127 thousand (year ended 31 December 2009: EUR 1 459 thousand).Remuneration is included in personnel expenses. 30.2. Other related parties CPA s.r.o. is the parent ot Železiarne Podbrezová a.s. During the year, the Group entered into the following transactions with related parties that did not represent consolidated entities in these consolidated financial statements: CPA s.r.o. - parent company Fellow subsidiaries Associates Joint ventures Other related parties Total CPA s.r.o. - parent company Fellow subsidiaries Associates Joint ventures Other related parties Total Purchases of goods and services in 2010 543 355 8 303 966 19 244 210 4 291 985 169 737 32 553 253 Purchases ot goods and services in 2009 538 143 3 363 088 9 868 679 2 531 338 106 162 16 407 410 Payables as at 31 Dec 2010 33 994 2 072 765 816 852 645 923 8 757 3 578 291 Payables as at 31 Dec 2009 6 625 225 1275189 1 052 869 512 906 180 534 9 646 723 Sales ot goods and services in 2010 218 516 43 870 705 77 634 111 708 27 957 44 306 520 Sales ot goods and services in 2009 218 897 19 695 263 113 408 202 311 63 390 20 293 269 Receivables as at 31 Dec 2010 22 438 2 545 658 11 057 150 2 579 303 Receivables as al 31 Dec 2009 22 548 1 853 257 43121 193 1 127 1 920 246 Transactions with the parent company represent advisory services, rent ot premises and acquisition ot financial investments. Transactions with associates mainly represent the purchase ot scrap. Transactions with joint ventures mainly represent transportation services. Transactions with fellow subsidiaries and other related parties mainly represent the purchase ot scrap, sale ot products ot the Group, and finance lease contracts. 1