34 Derivative financial instruments

EUR 1,000 Nominal value Fair value,
positive
Fair value,
negative
Fair value,
net
31 Dec 2014



Foreign exchange derivatives 77,179 7,015 -1,305 5,710
Interest rate derivatives 40,000
-1,045 -1,045
Commodity derivatives 2,659 87 -1,838 -1,750

119,838 7,102 -4,188 2,915





EUR 1,000 Nominal value Fair value,
positive
Fair value,
negative
Fair value,
net
31 Dec 2013



Foreign exchange derivatives 106,009 1,640 -726 914
Interest rate derivatives 47,180 216 -180 36
Commodity derivatives 24,407 23 -1,217 -1,194

177,597 1,879 -2,123 -244





The fair value of derivative instruments is the gain or loss arising from the settlement of the contract at the market price prevailing on the reporting date.

Hedge accounting has not been applied to all derivative instruments. Nevertheless, these derivative instruments have been utilised for hedging purposes. The derivatives are used in order to reduce business risks and to hedge balance-sheet items denominated in foreign currencies. Changes in the fair value of non-hedge accounted derivatives are recognised through profit or loss in accordance with their nature either in financial items or as other operating income and expenses.

Financial derivatives are subject to master netting or similar arrangements which are enforceable in some circumstances. According to these arrangements above mentioned derivative assets and derivative liabilities could be settled on a net basis. Netting arrangements are enforceable according to typical negligence events or other events of default as the general terms for derivative transactions applies. These items are recognised on gross basis in the balance sheet. Net figures would have been EUR 1.4 million (EUR 0.8 mill.) smaller than the figures presented in the table.

 
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