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97
Notes to the consolidated financial
statements, REC Group
REC Annual Report 2011
Estimated contractual cash flows in embedded foreign exchange forward contracts at December 31, 2010
(USD INMILLION)
TOTAL
2011
2012
2013
2014
2015
Total contract value
783
346
211
131
66
29
Future cash flows at December 31, 2010 were increased compared to the cash flows estimated at December 31, 2009 for the period from
2011 by USD 329million, of which USD 182million was a new contract.
HEDGING ACTIVITIES 2010
Cash flow hedging
RECWafer used hedge accounting up to the fourth quarter of 2008 for parts of its cash flow hedging activities, primarily related to currency
hedge of purchase of polysilicon in USD and sale of wafers in EUR. In the fourth quarter of 2008, RECWafer discontinued its hedge
accounting, and subsequently REC ASA and its subsidiaries have had no cash flow hedge accounting. However, amounts previously
recognized in equity remained in equity until the forecasted transactions occurred. At December 31, 2010 there were no remaining
currency and interest rate cash flow hedges. There was no ineffectiveness recognized in the statement of income that arose from cash flow
hedges in 2010.
Fair value hedging
RECASA issued a NOK 1,250million 11 percent fixed rate bond in the third quarter 2009, withmaturity in September 2014. The 11 percent
fixed rate consists of a five year fixed interest plus a credit spread of 6.9 percent. At the same time, RECASA entered into interest rate swaps
to convert the fixed interest rate to a (sixmonths) floating NIBOR rate.
The fair valueof the interest ratederivatives at December 31, 2010designated andeffective as hedge instrumentswas a gain ofNOK16million
excluding accumulated interest, and a loss ofNOK17million on thebond.
DETAILS RECEIVABLES
Trade and other receivables
(NOK INMILLION)
2011
2010
Trade receivables
2 145
2 412
Less provision for impairment of trade receivables
-9
-102
Trade receivables - net
2 136
2 310
Prepaid costs
87
127
VAT and other public taxes and duties receivables
102
286
Government grant current receivables
116
101
Other current receivables
111
129
Total trade and other receivables
2 553
2 953
Specification of provision for loss on trade receivables
(NOK INMILLION)
2011
2010
At January 1
-102
-2
Change in provision for loss
92
-102
Exchange difference
1
2
At December 31
-9
-102
Realized loss on trade receivables
-127
-1
Change in provision
92
-102
Loss on trade receivables in the statement of income
-36
-103
12