Annual Report 2019

225 Transport International Holdings Limited 2019 Annual Report Notes to the Financial Statements 31 Financial risk management and fair values of financial instruments (continued) (d) Currency risk (continued) The following table provides a reconciliation of the hedging reserve in respect of foreign currency risk and shows the effectiveness of the hedging relationships: 2019 2018 $’ 000 $’ 000 Balance at 1 January (1,124) – Effective portion of the cash flow hedge recognised in other comprehensive income – (1,346) Amounts transferred to the initial carrying amount of the hedged items (note (i)) 1,346 – Related tax (222) 222 Balance at 31 December (note (ii)) – (1,124) Change in fair value of the forward foreign exchange contracts during the year – (1,346) Hedge ineffectiveness recognised in profit or loss – – Effective portion of the cash flow hedge recognised in other comprehensive income – (1,346) Notes: (i) Amounts transferred from the hedging reserve are recognised in the “Other property, plant and equipment” line item in the consolidated statement of financial position. (ii) The entire balance in the hedging reserve relates to continuing hedges.