299 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT Hedge ineffectiveness can arise from: • Differences in the interest rate curves applied to discount the hedged item and hedging instrument • Differences in the timing of cash flows of the hedged item and hedging instrument As at 31 December 2022, the Group has interest rate swaps with nominal amounts of Baht 463 million, that are designated as hedging instruments to hedge cash flows (2021: USD 63 million). The Group is holding the following derivatives as hedging instruments as at 31 December 2022 and 2021 are, as follow: Consolidated financial statements Less than 1 year 1 to 5 years More than 5 years Total For the year ended 31 December 2022 Interest rate swap agreements (for lease liabilities) Notional amount (Baht Million) 213 251 - 464 Average fixed rate (%) 4.69 - 4.86 Book value (Baht Million) 1 1 - 2 For the year ended 31 December 2021 Cross currency swap agreements (for lease liabilities) Notional amount (Million US dollar) 7 25 6 38 Average fixed rate (%) 2.64 - 3.74 Average exchange rate (Baht/US dollar) 33.10 - 34.00 Interest rate swap agreements (for lease liabilities) Notional amount (Million US dollar) 16 47 - 63 Average fixed rate (%) 2.24 - 4.21 Notional amount (Baht Million) 235 431 - 666 Average fixed rate (%) 4.69 - 4.86 Book value (Baht Million) 321 903 - 1,224 Consolidated financial statements Cash flow hedge reserve Change in fair value used for measuring ineffectiveness Continuing hedges Discontinued hedges Cost of hedging reserve 2022 2021 2022 2021 2022 2021 2022 2021 Liabilities under lease agreements (5) 123 - (43) - (73) - 5 (Unit: Baht Million) The impact of hedged items on the statement of financial position as at 31 December 2022 and 2021 are as follows:
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