AVESCOGROUPPLC ANNUAL REPORT 2009 51
www.avesco.com
b) Loss from discontinued operations
The loss from discontinued operations relates to the disposal of the Group’s interest in Complete Communications Corporation Limited (“Complete”) as follows:
2009 2008
£000s £000s
Loss on disposal of associate 497 1,250
The loss on disposal of associate is in respect of the sale of the Group’s 49% holding in Complete to 2waytraffic N.V. in the year ended September 2007. The tax
effect of this item is £nil.
20. Derivative financial instruments
2009 2008
Assets Liabilities Assets Liabilities
Group £000s £000s £000s £000s
Foreign exchange contracts - cash flow hedges - - 146 -
The Company did not have any derivative financial instruments during the current or prior year.
Forward foreign exchange contracts
All Group derivative financial instruments related to hedged items maturing within 12 months of the balance sheet date and were therefore classified as current.
No ineffectiveness was recorded in any of the Group’s cash flow hedges.
There were no outstanding forward exchange contracts at 30 September 2009. The notional principal amounts of the outstanding forward exchange contracts at
30 September 2008 were £1,550,000.
The hedged highly probable forecast transactions denominated in foreign currency as at 30 September 2008 occurred during the year ended 30 September
2009. Gains and losses recognised in the hedging reserve in equity on forward foreign exchange contracts are recognised in the income statement in the period
or periods during which the hedged forecast transaction affects the income statement, which is generally within 12 months from the balance sheet date unless
the gain or loss is included in the initial recognition of a financial asset in which case recognition is over the lifetime of the asset (2-10 years).
Hedge of net investment in foreign entity
A proportion of the Group’s US dollar-denominated borrowing amounting to £3,517,000 (2008: £3,138,000) is designated as a hedge of the net investment in the
Group’s US subsidiary. There is no difference between the carrying value and the fair value of the loan.
A proportion of the Group’s Euro-denominated borrowing amounting to £1,833,000 (2008: £1,586,000) is designated as a hedge of the net investment in the
Group’s European subsidiaries. There is no difference between the carrying value and the fair value of the loan.
21. Trade and other receivables
Group Company
2009 2008 2009 2008
£000s £000s £000s £000s
Trade receivables 12,437 15,970 - -
Less provision for impairment of trade receivables (753) (472) - -
Trade receivables - net 11,684 15,498 - -
Receivables from Group undertakings - - 31,897 18,879
Other receivables 958 6,875 - -
Social security and other taxes - - 48
Prepayments and accrued income 3,723 4,240 86 113
16,365 26,613 31,987 19,000
Less non current portion: other receivables (109) (148) - -
Current portion 16,256 26,465 31,987 19,000
All non-current receivables are due within 5 years from the balance sheet date. Current amounts receivable are unsecured, interest free and repayable on
demand.
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