Search results

Download center

To generate a PDF, select pages or entire sections by checking a box on the left-hand side.

To download Consolidated financial statements’ tables in Excel format, select tables by checking a box on the right-hand side.

Constructing PDF 0%

Please wait

Cancel

PDF ready

PDF error

Please try selecting the pages you want again and click Generate pdf.

You have selected (0) sections of the Stora Enso Financial Report 2016.

Note 28 Cumulative translation adjustment and equity hedging
Cumulative translation adjustment
Year Ended 31 December
EUR million 2016 2015
At 1 January
CTA on net investment in non-euro foreign entities -155 -183
Hedging thereof 12 45
Net currency losses/gains in equity -143 -138
Tax on hedging -4 -11
-147 -149
CTA Movement for the Year Reported in OCI
Restatement of opening non-euro denominated equity 95 10
Difference in Income Statement translation 1 13
Internal equity injections and dividends 5 9
Other - -8
CTA release through the Income Statement 23 4
124 28
Hedging of Net Investment for the Year Reported in OCI
Hedging result -11 -33
Taxes 2 7
-9 -26
At 31 December
CTA on net investment in non-euro foreign entities -31 -155
Hedging thereof (see below) 1 12
Cumulative net currency losses in equity -30 -143
Tax on hedging -2 -4
Net CTA in Equity -32 -147
Hedging of Net Investment in Foreign Entities
Hedging 1 12
Tax on hedging -2 -4
Net Hedging Result in Equity -1 8
Realised gains 45 45
Unrealised gains/losses -46 -37
Total Gains -1 8
The group is currently hedging only its equity exposure to the US dollar. The main movements in CTA in 2016 were a gain of EUR 125 (loss of EUR 145) million related to the Brazilian real, a gain of EUR 45 (EUR 107) million related to the US dollar, a loss of EUR 33 (gain of EUR 16) million related to the Swedish crown, a loss of EUR 27 (gain of EUR 45) million related to the Chinese renminbi and a gain of EUR 24 (loss of EUR 10) million related to Russian rouble. The most significant accumulated CTA balances are in the US dollar area, amounting to a gain of EUR 241 (EUR 196) million, in Sweden, amounting to a loss of EUR 196 (EUR 163) million, in Brazil, amounting to a loss of EUR 128 (EUR 253) million and in China, amounting to a gain of EUR 97 (EUR 124) million.

The release of cumulative translation adjustments to the Income Statement amounted to a loss of EUR 23 (loss of EUR 4) million in 2016 and was mainly related to the disposal of Arapoti mill in Brazil.
Amounts recognised in the statement of financial position - CTA and equity hedging
As at 31 December
Cumulative Translation Adjustments (CTA) Equity Hedges Net CTA in the Statement of Financial Position
EUR million 2016 2015 2016 2015 2016 2015
Brazil -128 -253 - - -128 -253
China 97 124 - - 97 124
Czech Republic 26 26 -9 -9 17 17
Poland -34 -24 17 17 -17 -7
Russia -45 -69 - - -45 -69
Sweden -196 -163 50 50 -146 -113
Uruguay 227 188 -57 -46 170 142
USA 14 8 - - 14 8
Others 9 8 - - 9 8
CTA before Tax -31 -155 1 12 -30 -143
Taxes - - -2 -4 -2 -4
Net CTA in Equity -31 -155 -1 8 -32 -147
Amounts recognised in the statement of other comprehensive income - CTA and equity hedging
As at 31 December
Cumulative Translation Adjustments (CTA) Equity Hedges Net CTA in the Statement of Financial Position
EUR million 2016 2015 2016 2015 2016 2015
Brazil 125 -145 - - 125 -145
China -27 45 - - -27 45
Czech Republic - 3 - - - 3
Poland -10 4 - - -10 4
Russia 24 -10 - - 24 -10
Sweden -33 16 - - -33 16
Uruguay 39 103 -11 -33 28 70
USA 6 4 - - 6 4
Others 1 8 - - 1 8
CTA before Tax 124 28 -11 -33 113 -5
Taxes - - 2 7 2 7
Amounts recognised in OCI 124 28 -9 -26 115 2
Hedging of net investment in foreign entities
Group policy for translation risk exposure is to minimise this by funding assets whenever possible and economically viable in the same currency, but if matching of the assets and liabilities in the same currency is not possible hedging of the remaining translation risk may take place. The gains and losses net of tax on all financial liabilities and instruments used for hedging purposes are offset in CTA against the respective currency movements arising from the restatement of the net investments at current exchange rates on the reporting date; the net amount of losses included in CTA during the period as shown in the previous table came to EUR 9 (losses of EUR 26) million.
Hedging instruments and unrealised hedge losses
As at 31 December
Nominal amount (Currency) Nominal amount (EUR) Unrealised Losses (EUR)
EUR million 2016 2015 2016 2015 2016 2015
Borrowings
USD area 350 350 332 321 -46 -37
Total Hedging 332 321 -46 -37

Dear reader,

The Stora Enso Financial Report is optimised for mobile devices, but for the best experience, we recommend that you use a larger screen size.