Financial instruments (Tables)

12 Months Ended

Dec. 31, 2018

Analysis of Financial Assets and Liabilities

An analysis of the Group’s financial assets and liabilities by accounting classification is set out below:


Classification under IFRS 9	Derivatives in designated hedge relationships		Held at fair value through profit or loss			Held at fair value through other comprehensive income		Amortised cost			Carrying value
	£m		£m			£m		£m			£m
2018
Other investments		–		319.6			347.1		–			666.7
Cash and short-term deposits		–		–			–		2,643.2			2,643.2
Bank overdrafts, bonds and bank loans		–		–			–		(1,025.1	)		(1,025.1	)
Bonds and bank loans		–		–			–		(5,634.8	)		(5,634.8	)
Trade and other receivables: amounts falling due within one year		–		–			–		8,545.6			8,545.6
Trade and other receivables: amounts falling due after more than one year		–		–			–		68.3			68.3
Trade and other payables: amounts falling due within one year		–		–			–		(10,637.3	)		(10,637.3	)
Trade and other payables: amounts falling due after more than one year		–		–			–		(8.4	)		(8.4	)
Derivative assets		8.4		1.3			–		–			9.7
Derivative liabilities		(14.2)		(2.6	)		–		–			(16.8	)
Payments due to vendors (earnout agreements) (note 18)		–		(414.7	)		–		–			(414.7	)
Liabilities in respect of put options		–		(242.0	)		–		–			(242.0	)
		(5.8)		(338.4	)		347.1		(6,048.5	)		(6,045.6	)


Classification under IAS 39	Derivatives in designated hedge relationships			Held for trading			Loans and receivables		Available for sale		Amortised cost			Carrying value
	£m			£m			£m		£m		£m			£m
2017
Other investments		–			–			–		1,153.5		–			1,153.5
Cash and short-term deposits		–			–			2,391.4		–		–			2,391.4
Bank overdrafts, bonds and bank loans		–			–			–		–		(624.1	)		(624.1	)
Bonds and bank loans		–			–			–		–		(6,250.4	)		(6,250.4	)
Trade and other receivables: amounts falling due within one year		–			–			8,328.4		–		–			8,328.4
Trade and other receivables: amounts falling due after more than one year		–			–			61.7		–		–			61.7
Trade and other payables: amounts falling due within one year		–			–			–		–		(9,970.5	)		(9,970.5	)
Trade and other payables: amounts falling due after more than one year		–			–			–		–		(8.5	)		(8.5	)
Derivative assets		2.1			1.0			–		–		–			3.1
Derivative liabilities		(3.3	)		(3.5	)		–		–		–			(6.8	)
Payments due to vendors (earnout agreements) (note 18)		–			(630.7	)		–		–		–			(630.7	)
Liabilities in respect of put options		–			(258.1	)		–		–		–			(258.1	)
		(1.2	)		(891.3	)		10,781.5		1,153.5		(16,853.5	)		(5,811.0	)

Analysis of Financial Instruments Measured at Fair Value

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable:

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices);

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Level 1
£m

Level 2
£m

Level 3
£m

2018

Derivatives in designated hedge relationships

Derivative assets

–

8.4

–

Derivative liabilities

–

(14.2

)

–

Held at fair value through profit or loss

Other investments

0.4

–

319.2

Derivative assets

–

1.3

–

Derivative liabilities

–

(2.6

)

–

Payments due to vendors (earnout agreements) (note 18)

–

(414.7

)

Liabilities in respect of put options

–

(242.0

)

Held at fair value through other comprehensive income

Other investments

128.1

–

219.0

Level 1
£m

Level 2
£m

Level 3
£m

2017

Derivatives in designated hedge relationships

Derivative assets

–

2.1

–

Derivative liabilities

–

(3.3

)

–

Held for trading

Derivative assets

–

1.0

–

Derivative liabilities

–

(3.5

)

–

Payments due to vendors (earnout agreements) (note 18)

–

(630.7

)

Liabilities in respect of put options

–

(258.1

)

Available for sale

Other investments

333.2

–

820.3

There have been no transfers between these levels in the periods presented.

Reconciliation of level 3 fair value measurements¹:


	Liabilities in respect of put options £m			Other investments £m
1 January 2017		(297.0	)		881.0
Gains/(losses) recognised in the income statement		52.5			(13.8	)
Gains recognised in other comprehensive income		–			15.1
Exchange adjustments		7.5			(70.9	)
Additions		(40.5	)		67.7
Disposals		–			(1.7	)
Cancellations		2.9			–
Reclassifications from other investments to interests in associates		–			(57.1	)
Settlements		16.5			–
31 December 2017		(258.1	)		820.3
Gains recognised in the income statement		34.5			61.1
Losses recognised in other comprehensive income		–			(140.6	)
Exchange adjustments		1.1			–
Additions		(43.5	)		35.0
Disposals		–			(237.3	)
Cancellations		2.2			–
Reclassifications from other investments to interests in associates		–			(0.3	)
Settlements		21.8			–
31 December 2018		(242.0	)		538.2

Note

The reconciliation of payments due to vendors (earnout agreements) is presented in note 18.