Measurement of financial instruments by category
| Book amount |
Amortised cost |
Fair value recognised in equity |
Fair value recognised in P&L account |
|||||
| At 31 December 2007 | €m | €m | €m | €m | ||||
| Assets | ||||||||
| Other financial assets: | ||||||||
| Derivative hedging instruments (held for trading) | 4.6 | – | 4.6 | – | ||||
| Derivative non-hedging instruments (held for trading) |
9.4 | – | – | 9.4 | ||||
| Cash and short-term deposits | 60.9 | 60.9 | – | – | ||||
| Trade and other receivables | 1,391.8 | 1,391.8 | – | – | ||||
| 1,466.7 | 1,452.7 | 4.6 | 9.4 | |||||
| Liabilities and shareholders’ equity: | ||||||||
| Other financial liabilities: | ||||||||
| Derivative hedging instruments (held for trading) | (53.5) | – | (9.4) | (44.1) | ||||
| Derivative non-hedging instruments (held for trading) |
(1.3) | – | – | (1.3) | ||||
| Bank overdrafts | (8.8) | (8.8) | – | – | ||||
| Bank loans and other loans | (150.0) | (150.0) | – | – | ||||
| Commercial paper | (22.2) | (22.2) | – | – | ||||
| Loan notes | (549.2) | (549.2) | – | – | ||||
| Obligations under finance leases | (273.7) | (273.7) | – | – | ||||
| Deferred consideration | (30.6) | (30.6) | – | – | ||||
| Trade and other payables | (670.3) | (670.3) | – | – | ||||
| (1,759.6) | (1,704.8) | (9.4) | (45.4) |
| Book amount |
Amortised cost |
Fair value recognised in equity |
Fair value recognised in P&L account |
|||||
| At 31 December 2006 | €m | €m | €m | €m | ||||
| Assets | ||||||||
| Other financial assets: | ||||||||
| Derivative hedging instruments (held for trading) |
1.0 | – | 1.0 | – | ||||
| Derivative non-hedging instruments (held for trading) |
10.3 | – | – | 10.3 | ||||
| Cash and short-term deposits | 116.6 | 116.6 | – | – | ||||
| Trade and other receivables | 1,358.6 | 1,358.6 | – | – | ||||
| 1,486.5 | 1,475.2 | 1.0 | 10.3 | |||||
| Liabilities and shareholders’ equity: | ||||||||
| Other financial liabilities: | ||||||||
| Derivative hedging instruments (held for trading) | (72.5) | – | (7.9) | (64.6) | ||||
| Derivative non-hedging instruments (held for trading) |
(1.1) | – | – | (1.1) | ||||
| Bank overdrafts | (3.3) | (3.3) | – | – | ||||
| Bank loans and other loans | (7.1) | (7.1) | – | – | ||||
| Commercial paper | – | – | – | – | ||||
| Loan notes | (780.5) | (780.5) | – | – | ||||
| Obligations under finance leases | (292.1) | (292.1) | – | – | ||||
| Deferred consideration | (33.0) | (33.0) | – | – | ||||
| Trade and other payables | (672.6) | (672.6) | – | – | ||||
| (1,862.2) | (1,788.6) | (7.9) | (65.7) |
The fair value of the above items recognised at amortised cost is as below:
Summary of fair values of non-derivative financial assets and liabilities
| 2007 | 2006 | ||||||
| Book amount €m |
Fair value €m |
Book amount as restated1 €m |
Fair value as restated1 €m |
||||
| Fair value of financial assets and financial liabilities: | |||||||
| Non-current assets – available for sale investments (see Note 15) | 0.6 | 0.6 | 0.7 | 0.7 | |||
| Trade and other receivables (see Note 19) | 1,391.8 | 1,391.8 | 1,358.6 | 1,358.6 | |||
| Current assets – held for trading (see Note 15) | 5.4 | 5.4 | 22.6 | 22.6 | |||
| Cash and cash equivalents (see Note 20) | 60.9 | 60.9 | 116.6 | 116.6 | |||
| Trade and other payables (see Note 21) | (670.3) | (670.3) | (672.6) | (672.6) | |||
| Obligations under finance leases (see Note 24) | (273.7) | (273.7) | (292.1) | (292.1) | |||
| Financial liabilities – borrowings: | |||||||
| – Current (see Note 25) | (31.0) | (31.0) | (231.7) | (226.1) | |||
| – Non-current (see Note 25) | (699.2) | (657.1) | (559.2) | (512.3) | |||
| Financial liabilities – deferred consideration: | |||||||
| – Current (see Note 25) | (0.3) | (0.3) | (0.3) | (0.3) | |||
| – Non-current (see Note 25) | (30.3) | (28.8) | (32.7) | (35.5) | |||
- 1 Restated following the prior year adjustment regarding Avis Portugal (see Note 33).
The Directors consider that the book value of non-current assets – available-for-sale investments; trade and other receivables; current assets – held for trading; cash and cash equivalents; and trade and other payables, approximate to their fair value.
The fair value of obligations under finance leases approximates to their book value as the majority of these obligations are due within one year (see Note 24).
The fair value of borrowings and deferred consideration for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.
