|Cash flow hedge reserve|
|At the beginning of the year||(524,019)||(192,223)|
|Changes in clean fair value||256,012||(439,821)|
|Hedge interest settled during year||231,076||51,741|
|Movement in interest accrual||514||64,338|
|Transferred to income statement||(231,590)||(116,079)|
|Net movement in cash flow hedge reserve before tax||256,012||(439,821)|
|Deferred tax recognised in other comprehensive income||(65,701)||108,025|
|At 31 December||(333,708)||(524,019)|
|Available for sale reserve|
|At the beginning of the year||1,805||82|
|Net changes in fair value||(4,127)||2,297|
|Net movement in available for sale reserve before tax||(4,127)||2,297|
|Deferred tax recognised in other comprehensive income||567||(574)|
|At 31 December||(1,755)||1,805|
Total other reserves
Other reserves comprise the cash flow hedge reserve and the available for sale reserve.
NAMA applies hedge accounting to a portion of its senior debt securities in issue. Changes in fair value for derivatives designated, and that are effective in hedge relationships, are recognised in reserves.
NAMA acquires government bonds for the purposes of liquidity management and to maximise its return on cash balances. Government bonds are classified as available for sale assets in accordance with IAS 39. Changes in fair value are recognised in reserves.
The net movement in the cash flow hedge reserve for 2013 was an increase of €256m (2012: decrease of €439.8m) before tax which was the fair value movement in derivatives where hedge accounting is applied of €249.2m (2012: €432.1m) plus an adjustment relating to hedge ineffectiveness of €6.8m (2012: €7.7m). The net movement in the available for sale reserve for the year was a decrease of €4.1m (2012: increase of €2.3m) which reflects the fair value movement in available for sale investments held at the reporting date.