6. Derivative financial instruments
| (CZK’000) | 31 December 2015 | 31 December 2014 |
|---|---|---|
| Currency swaps and forwards | 38,424 | (38,981) |
| Interest rate swaps | (8,551) | 1,097 |
| Total fair value (Note 4.3) | 29,873 | (37,884) |
These derivative transactions, while providing effective economic hedges under the Company’s risk management positions, do not qualify for hedge accounting under the specific Czech accounting rules and are therefore treated as trading derivatives with revaluation gains/ losses recognized in the income statement.
The tables above provide a detailed breakdown of the fair value of the Company’s derivative financial instruments outstanding as at the year end. These instruments allow the Company to transfer, modify or reduce their foreign exchange and credit risks.
Derivative financial instruments were valued using only market prices or valuation models based only on available market data.