Universal Registration Document 2020

18.7.5 Impact of hedging derivatives on comprehensive income

Changes in the fair value of hedging derivatives included in equity (EDF share) and profit and loss are detailed below:

	2020			2019
(in millions of euros)	Gross changes in fair value recorded in equity ⁽¹⁾	Gross changes in fair value transferred to income – Recycling ⁽²⁾	Gross changes in fair value transferred to income – Ineffectiveness	Gross changes in fair value recorded in equity ⁽¹⁾	Gross changes in fair value transferred to income – Recycling ⁽²⁾	Gross changes in fair value transferred to income – Ineffectiveness
Interest rate hedging	Interest rate hedging 2020 (24)	Interest rate hedging 2019 -	-	(39)	(106)	3
Exchange rate hedging	Exchange rate hedging 2020 (850)	Exchange rate hedging 2019 51	13	(200)	(156)	(17)
Net foreign investment hedging	Net foreign investment hedging 2020 661	Net foreign investment hedging 2019 -	-	(416)	(448)	-
Commodity hedging	Commodity hedging 2020 644	Commodity hedging 2019 430	(14)	1 482	719	3
HEDGING DERIVATIVES ⁽³⁾	HEDGING DERIVATIVES ⁽³⁾ 2020 431	HEDGING DERIVATIVES ⁽³⁾ 2019 481	(1)	827	9	(11)

(1) +/( ): increase/(decrease) in equity (EDF share).
(2) +/( ): increase/(decrease) in net income (EDF share).
(3) Excluding associates and joint ventures.

The amount transferred to operating profit before depreciation and amortisation in 2020 is €430 million in respect of commodity hedges comprises:

€818 million for electricity hedging contracts, mainly concerning the UnitedKingdom and the France – Generation and supply segments;
€(452) million for gas hedging contracts, concerning the France – Generation and supply segment;
€64 million for other hedging contracts.

18.7.6Offsetting of financial assets and liabilities

Accounting principles and methods

A financial asset and financial liability must be netted if the entity currently has a legally enforceable right to do so and intends either to settle the net amount or to realise the asset and settle the liability simultaneously.

At 31 December 2020

			Balance with offsetting under IAS 32			Amounts covered by a general offsetting agreement but not offset under IAS 32
(in millions of euros)	As reported in balance sheet	Balance without offsetting	Gross amount recognised (before offsetting)	Gross amount offset under IAS 32	Net amount recognised after offsetting under IAS 32	Financial instruments	Fair value of financial collateral	Net amount
Fair value of derivatives – assets	Fair value of derivatives – assets 10,477	Fair value of derivatives – assets 2,956	Fair value of derivatives – assets Balance with offsetting under IAS 32 11,091	Fair value of derivatives – assets Amounts covered by a general offsetting agreement but not offset under IAS 32 (3,570)	7,521	(1,672)	(2,797)	3,052
Fair value of derivatives – liabilities	Fair value of derivatives – liabilities (7,917)	Fair value of derivatives – liabilities (2,927)	Fair value of derivatives – liabilities Balance with offsetting under IAS 32 (8,560)	Fair value of derivatives – liabilities Amounts covered by a general offsetting agreement but not offset under IAS 32 3,570	(4,990)	1,672	568	(2,750)

At 31 December 2019

			Balance with offsetting under IAS 32			Amounts covered by a general offsetting agreement but not offset under IAS 32
(in millions of euros)	As reported in balance sheet	Balance Without offsetting	Gross amount recognised (before offsetting)	Gross amount offset under IAS 32	Net amount recognised after offsetting under IAS 32	Financial instruments	Fair value of financial collateral	Net amount
Fair value of derivatives – assets	Fair value of derivatives – assets 12,572	Fair value of derivatives – assets 3,752	Fair value of derivatives – assets Balance with offsetting under IAS 32 13,300	Fair value of derivatives – assets Amounts covered by a general offsetting agreement but not offset under IAS 32 (4,480)	8,820	(1,298)	(3,097)	4,425
Fair value of derivatives – liabilities	Fair value of derivatives – liabilities (8,157)	Fair value of derivatives – liabilities (3,785)	Fair value of derivatives – liabilities Balance with offsetting under IAS 32 (8,852)	Fair value of derivatives – liabilities Amounts covered by a general offsetting agreement but not offset under IAS 32 4,480	(4,372)	1,298	531	(2,543)