Page 337 - BTSGroup ONE REPORT 2021/22_EN

BTS Group Holdings Public Company Limited 6.4 Notes to Consolidated Financial Statements 335
Annual Report 2021/22

Details of holding the following derivatives as hedging instruments, by The impact of the hedged items on the statement of financial position
maturity, as at 31 March 2022 and 2021 are, as follows: as at 31 March 2022 and 2021 are, as follows:

1 to 5 years (Unit: Million Baht)
2022 2021 Change in fair value Surplus on changes
used for measuring in value of
Foreign exchange forward contracts ineffectiveness investments
(for foreign equity instruments)
2022 2021 2022 2021
Notional amount (Million Baht) 758 758
Forward rate (Baht/USD) 29.56 - 30.04 29.56 - 30.04 Foreign equity instruments 50 25 75 25
designated at fair value
through other comprehensive
The impact of the hedging instruments on the statement of financial income.
position as at 31 March 2022 and 2021 are, as follows:
Hedge of Net Investments in Foreign Operations
Notional Carrying Line item Change in fair The Group entered into forward contracts which have been designated
amount amount in the value used as a hedge of the net investments in the associate in Vietnam. The
statement for measuring
of f nancial ineffectiveness forward contracts are being used to hedge the Group’s exposure to
position the VND foreign exchange risk on the investment. Gains or losses on
the effective portion of hedging instrument are transferred to other
(Million Baht) (Million Baht) (Million Baht)
comprehensive income to offset any gains or losses on translation of
2022 2021 2022 2021 2022 2021
the net investments in the associate.
Foreign 758 758 (68) (44) Other (48) (25)
exchange current There is an economic relationship between the hedged item and the
forward financial hedging instrument as the net investment creates a translation risk that
contracts liabilities
will match the foreign exchange risk on the forward contracts. The
Group has established a hedge ratio of 1:1 as the underlying risk of
the hedging instrument is identical to the hedged risk component. The
hedge ineffectiveness will arise when the amount of the investment in
the foreign associate becomes lower than the amount of the fair value
of forward contracts.