Airbus - Financial Statements 2022

2. Notes to the IFRS Consolidated Financial Statements Capital Structure and Financial Instruments

The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness for cash flow hedges as of 31 December 2021:

Carrying values

OCI

Changes in values of the hedging instrument

Hedge inefficiency recorded in financial result

Amounts reclassified from hedge reserve to profit or loss

Other changes in value of the hedge reserve

Asset

Liability

(In € million)

Foreign currency risk

Net forward sales contracts

637

(4,092)

5,349

(72)

(106)

(64)

Foreign exchange options

0

0

0

2

0

0

Embedded Derivatives

0

(40)

30

0

0

(3)

Interest rate risk

0

(1)

0

0

0

0

Commodity swap risk

7

(3)

(12)

0

1

0

Equity swap risk

3

(5)

(6)

0

0

0

Total

647

(4,141)

5,361

(70)

(105)

(67)

38.6 Net Gains or Net Losses

The Company’s net gains or net losses recognised in profit or loss in 2022 and 2021, respectively, are as follows:

2022

2021

(In € million)

Financial assets or financial liabilities at fair value through profit or loss

Held for trading

497

404

Designated on initial recognition

95

188

Financial assets at amortised cost

(232)

283

Financial assets at fair value through OCI (previously available ‑ for ‑ sale)

55

20

Financial liabilities measured at amortised cost

(75)

(700)

Net losses of €-1,169 million (2021: €-218 million) are recognised directly in equity relating to financial assets at fair value. Interest income from financial assets or financial liabilities through profit or loss is included in net gains or losses.

38.7 Impairment Losses

Loss allowances — For its portfolio of debt instruments including bonds, term deposits and commercial papers, the Company measures loss allowances at an amount that represents credit losses resulting from default events that are possible within the next 12 months, unless the credit risk on a financial instrument has increased significantly since initial

recognition. In the event of such significant increase in credit risk the Company measures loss allowances for that financial instrument at an amount equal to its life ‑ time expected losses, i.e. at an amount equal to the expected credit losses that result from all possible default events over the expected life of that financial instrument.

86