Balance sheet question - Derivative financial instruments
Posted: July 22nd, 2018, 8:16 am
Morning,
I'm looking at TATEs reports, and also musing about processing/analysing company financials in general.
So on pg102 of
https://www.tateandlyle.com/sites/defau ... 0FINAL.pdf
we have entries for both CL and NCL described as being "Derivative financial instruments". I went to the related Note 28 and although a couple of the constituents of this entry have "interest" in their name e.g. "interest rate swaps", since there is no mention of a specific rate associated, i.e. in the words following the table in Note 28; would I be correct to assume that these things (DFIs), in general, have no associated annual interest charge applied to them, and hence should not be classed as debt?
many thanks
Matt (and Mel)
I'm looking at TATEs reports, and also musing about processing/analysing company financials in general.
So on pg102 of
https://www.tateandlyle.com/sites/defau ... 0FINAL.pdf
we have entries for both CL and NCL described as being "Derivative financial instruments". I went to the related Note 28 and although a couple of the constituents of this entry have "interest" in their name e.g. "interest rate swaps", since there is no mention of a specific rate associated, i.e. in the words following the table in Note 28; would I be correct to assume that these things (DFIs), in general, have no associated annual interest charge applied to them, and hence should not be classed as debt?
many thanks
Matt (and Mel)