10.8.3 Cash flow hedging reserve

Cash flow hedging reserve comprises changes in the valuation of foreign-currency bank borrowings used as cash flow hedges for USD- denominated sales, less the effect of deferred income tax.

Changes in the fair value of derivative financial instruments designated as cash flow hedges are charged to the cash flow hedging reserve to the extent they represent an effective hedge, while the ineffective portion is charged to finance income or costs in the reporting period.