Thanks, that's one for WWW's bottom. From your link I have:
A leading aviation auditor said that by IFRS and fair-value accounting rules, derivatives losses were recognised. By UK Gaap (generally accepted accounting practice) they were disclosed but not recognised in the results.
Mr Chan said: “They [Virgin Atlantic] do not apply IFRSs. So we had to make some adjustments in relation to their hedges and because they do use proxy hedges there are some adjustments for [the] ineffectiveness of the hedge.”
Chew Choon Seng, Singapore Airlines’ chief executive, said that during the financial year to March 31, its 49 per cent stake in Virgin Atlantic had contributed S$400,000, a virtual break even, to its total profits of S$111m from associate companies.
I'm trying to get my head around this. Are they saying that derivatives losses/profits don't show in the P&L using Gaap? Where would they appear then?