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| All figures in £ millions | 2005 Assets | 2005 Liabilities |
|---|---|---|
| Interest rate derivatives - in a fair value hedging relationship | 31 | (16) |
| Interest rate derivatives - not in a hedging relationship | 18 | (6) |
| Cross currency rate derivatives - in a net investment hedging relationship | 13 | - |
| Cross currency rate derivatives - not in a hedging relationship | 21 | - |
| Total | 83 | (22) |
| Analysed as: | ||
| Non-current | 79 | (22) |
| Current (expiring in less than 1 year) | 4 | - |
| Total | 83 | (22) |
The fair value of the above derivative financial instruments is the same as the carrying value.
The Group's portfolio of derivatives is diversified by maturity, counterparty and type. Natural offsets between transactions within the portfolio and the designation of certain derivatives as hedges, significantly reduces the risk of income statement volatility.
Counterparty exposure from derivatives is managed, together with that from deposits and bank account balances, within credit limits that reflect published credit ratings to ensure that there is no significant risk to any one counterparty. No single derivative transaction had a market value (positive or negative) at the balance sheet date that exceeded 3% of the Group's consolidated total equity.
At the year end the Group had received an amount of £43m equivalent as collateral under a mark-to-market agreement. This reflected the amount, at market rates prevailing at the end of October 2005, owed to the Group by the counterparty for a set of three related derivatives. Under these the Group is due to exchange $209m for €204m in February 2007. There are no restrictions on the Group's use of these funds, which have been recorded in borrowings as a current bank loan.
In accordance with IAS 39 'Financial Instruments: Recognition and Measurement', the Group has reviewed all its material contracts for embedded derivatives that are required to be separately accounted for if they do not meet certain requirements, and has concluded that there are no material embedded derivatives.
