Financial Statements Financial Statements Press Metal Aluminium Holdings Berhad 298 299 Integrated Annual Report 2023 Notes to the Financial Statements Notes to the Financial Statements 28. FINANCIAL INSTRUMENTS (CONT’D) 28.7 Hedging activities (cont’d) 28.7.3 Cash flow hedge (cont’d) The following table provides reconciliation by risk category of components of equity and analysis of OCI items, resulting from cash flow hedge accounting. Group Hedging reserve 2023 RM’000 2022 RM’000 Balance at 1 January 167,161 (842,064) Cash flow hedge Net hedging (loss)/gain: Foreign currency risk (826,384) 66,571 Commodity price risk 331,367 574,847 Amount reclassified to profit or loss: Foreign currency risk 193,067 112,946 Commodity price risk (212,332) 309,581 Share of losses of hedging reserve of an equity-accounted associate (3,607) - Tax on movements on reserve during the year (Note 11) 64,007 (54,720) Balance at 31 December (286,721) 167,161 Hedging reserve attributable to: Owners of the Company (259,261) 121,052 Non-controlling interests (27,460) 46,109 Balance at 31 December (286,721) 167,161 Company Balance at 1 January 11,481 11,314 Cash flow hedge Net hedging (loss)/gain: Foreign currency risk (84,314) 220 Tax on movements on reserve during the year (Note 11) 20,235 (53) Balance at 31 December (52,598) 11,481 28.7.4 Material accounting policy information For cash flow hedge, the Group has elected to account for the entire forward contract/swap as a hedging instrument in its entirety. The forward element of these forward contracts/swaps is not separately accounted for from its spot element. Accordingly, the change in fair value of the entire forward contract/swap is recognised in the hedging reserve in equity. 28. FINANCIAL INSTRUMENTS (CONT’D) 28.8 Fair value information The carrying amounts of cash and cash equivalents, short-term receivables and payables and short-term borrowings reasonably approximate their fair values due to the relatively short-term nature of these financial instruments. The table below analyses other financial instruments at fair value. Group Fair value of financial instruments carried at fair value Fair value of financial instruments not carried at fair value Total fair value RM’000 Carrying amount RM’000 Level 1 RM’000 Level 2 RM’000 Level 3 RM’000 Total RM’000 Level 1 RM’000 Level 2 RM’000 Level 3 RM’000 Total RM’000 2023 Financial assets Unquoted shares - - 1,803 1,803 - - - - 1,803 1,803 Derivatives - 226,408 - 226,408 - - - - 226,408 226,408 - 226,408 1,803 228,211 - - - - 228,211 228,211 Financial liabilities Derivatives - (439,283) - (439,283) - - - - (439,283) (439,283) IMTN - - - - - - (2,815,006) (2,815,006) (2,815,006) (2,800,000) Bank loans - - - - - - (1,386,884) (1,386,884) (1,386,884) (1,386,884) - (439,283) - (439,283) - - (4,201,890) (4,201,890) (4,641,173) (4,626,167) 2022 Financial assets Unquoted shares - - 1,803 1,803 - - - - 1,803 1,803 Derivatives - 515,507 - 515,507 - - - - 515,507 515,507 - 515,507 1,803 517,310 - - - - 517,310 517,310 2022 Financial liabilities Derivatives - (214,957) - (214,957) - - - - (214,957) (214,957) IMTN - - - - - - (2,222,997) (2,222,997) (2,222,997) (2,300,000) Bank loans - - - - - - (1,730,310) (1,730,310) (1,730,310) (1,730,310) - (214,957) - (214,957) - - (3,953,307) (3,953,307) (4,168,264) (4,245,267)
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