Other information
EDF uses derivatives in order to minimise the impact of foreign exchange risks and interest rate risks.
These derivatives comprise interest rate and currency derivatives such as futures, forwards, swaps and options traded on the over-the-counter market.
The application at 1 January 2017 of ANC regulation 2015-05 concerning forward financial instruments and hedging operations led to recognition of unrealised gains on the foreign exchange optimisation portfolio, and the unrealised gain or loss on currency derivatives classified as hedging instruments, in the balance sheet in the revaluation surplus accounts created by the regulation. These accounts are netted with the unrealised foreign exchange gains or losses booked in respect of the hedged items.
Hedging derivatives correct the foreign exchange result or interest income on the corresponding asset or liability. If the foreign exchange risk is fully hedged, no provision is recorded. If it is only partly hedged, a provision is recorded for the entire unhedged portion of the unrealised loss.
For other instruments, when there is no hedging relationship, a provision is recorded for unrealised losses and unrealised gains are not recognised.
Instruments in the portfolio at the year-end are included in off-balance sheet commitments at the nominal value of the contracts.
Forward financial instruments on commodities are traded for hedging purposes. Gains and losses on these operations are included in sales or in the cost of energy purchases, symmetrically to the hedged items, in accordance with ANC regulation 2015-05 concerning forward financial instruments and hedging operations, which has been applicable since 1 January 2017.
Instruments in the portfolio at the year-end are included in off-balance sheet commitments at the quantities to be delivered or received under the contracts.
