Page 241 - BTSGroup ONE REPORT 2021/22_EN

BTS Group Holdings Public Company Limited 6.4 Notes to Consolidated Financial Statements 239
Annual Report 2021/22

The way cash flow hedge reserve accumulated in other comprehensive comprehensive income is reclassified to profit or loss on systematic
income are subsequently accounted for, depends on the nature of the and rational basis. The reclassified amounts are recognised in profit
underlying hedged transaction. If the hedged transaction subsequently or loss in the same line as the hedged item. If the hedged item is a
results in the recognition of a non-financial item, the reserve accumulated non-financial item, then the reserve is removed directly from equity and
in equity is removed from the separate component of equity and included included in the initial carrying amount of the recognised non-financial item.
in the initial cost or other carrying amount of the hedged asset or liability. Furthermore, if the Group expects that some or all of the loss
This is not a reclassification adjustment and is not recognised in other accumulated in cost of hedging reserve will not be recovered in the
comprehensive income for the period. For any other cash flow hedges, future, that amount is immediately reclassified to profit or loss.
the reserve accumulated in other comprehensive income is subsequently
reclassified to profit or loss as a reclassification adjustment in the same Hedges of a net investment in a foreign operation
period which the hedged cash flows affect profit or loss.
Hedges of a net investment in a foreign operation, including a hedge of
a monetary item that is accounted for as part of the net investment,
If cash flow hedge accounting is discontinued, the cash flow hedge are accounted for in a way similar to cash flow hedges. Gains or losses on
reserve accumulated in other comprehensive income must remain the hedging instrument relating to the effective portion of the hedge are
in equity if the hedged future cash flows are still expected to occur. recognised as other comprehensive income while any gains or losses
Otherwise, the reserve will be immediately reclassified to profit or loss relating to the ineffective portion are recognised in profit or loss.
as a reclassification adjustment. After discontinuation, once the hedged On disposal of the foreign operation, the cumulative value of any such gains
cash flow occurs, the way the reserve remaining in equity is accounted or losses recorded in equity is transferred to profit or loss.
for depends on the nature of the underlying transaction as
described above.
4.29 Fair value measurement
The Group designates only the spot element of forward contracts and Fair value is the price that would be received to sell an asset or paid
the financial instrument excluding the foreign currency basis spread as to transfer a liability in an orderly transaction between buyer and seller
a hedging instrument. The change in fair value of the forward element (market participants) at the measurement date. The Group applies a
of forward contracts and the foreign currency basis spread of financial quoted market price in an active market to measure its assets and
instrument that relates to the hedged item is separately accounted liabilities that are required to be measured at fair value by relevant
for as a cost of hedging which is recognised in other comprehensive financial reporting standards. Except in case of no active market of
income and accumulated in a separate component of equity under cost an identical asset or liability or when a quoted market price is not available,
of hedging reserve. the Group measures fair value using valuation technique that
are appropriate in the circumstances and maximises the use of relevant
If the hedged item is transaction-related, the cost of hedging reserve observable inputs related to assets and liabilities that are required to
accumulated in other comprehensive income is reclassified to profit be measured at fair value.
or loss when the hedged item affects profit or loss. If the hedged
item is time-period related, then the reserve accumulated in other