Labels:text | screenshot | font | book OCR: Derivative instruments Premiums paid or received on hedging instruments are amortised over the period of the instrument contracts and included in financing charges. Profits and losses relating to these instruments are accounted for in income when the effects of price changes of the underlying transactions occur. Interest differentials, under swap contracts used to manage interest rate risk, are recognised as adjustments to financing charges. Foreign currencies Transactions in foreign exchange are translated at the contracted spot rate of the original forward exchange contract, where applicable, or at the spot rate ruling at the transaction date. Assets and liabilities in foreign currencies are translated at the contracted spot rate of the underlying forward exchange contract or, where applicable, at spot rate prevailing at year-end. The costs of forward exchange contracts are accrued over the period of the contract and are included in financing charges.
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