37.5 Revaluation reserve from valuation of hedging instruments

Table 1

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Year ended
31 December 2020
Year ended
31 December 2019
Opening balance 15,666 3,371
Remeasurement of hedging instruments (96,821) 15,074
Remeasurement of hedging instruments charged to profit or loss (6,351) 105
Deferred income tax 19,603 (2,884)
Closing balance (67,903) 15,666

The revaluation reserve from valuation of hedging instruments results from valuation of Interest Rate Swaps (IRS) hedging the interest rate risk arising from debt, which has been discussed in more detail in Note 51.3 to these consolidated financial statements.

For concluded hedging transactions covered by the financial risk management policy, the Company applies hedge accounting.

As at 31 December 2020, the Company recognised the amount of PLN (67,903) thousand of revaluation reserve from valuation of hedging instruments. This amount represents the liability arising from the measurement of IRS instruments as at the balance sheet date in the amount of PLN 90,061 thousand, adjusted by the portion of the measurement relating to debt interest accrued at the balance sheet date, including the deferred tax.