39.4. Revaluation reserve from the measurement of hedging instruments
| Year ended 31 December 2022 |
Year ended 31 December 2021 |
|
| Opening balance | 299 | (68) |
| Remeasurement of hedging instruments | 187 | 455 |
| Deferred income tax | (36) | (88) |
| Closing balance | 450 | 299 |
The revaluation reserve from valuation of hedging instruments results from valuation of Interest Rate Swaps (IRS) hedging the interest rate risk arising from bonds issued, which has been discussed in more detail in Note 30 to consolidated financial statements. For the transactions concluded, the Group applies hedge accounting.
As at 31 December 2022, the Group recognised the amount of PLN 450 million of the revaluation reserve from the measurement of hedging instruments. This amount represents an asset on account of the measurement of IRS instruments as at the balance sheet day in the amount of PLN 592 million, adjusted by the portion of the measurement relating to debt interest accrued at the balance sheet day, including the deferred tax.
The increase in the hedging instruments revaluation reserve during the year ended 31 December 2022 results from the increase in the positive valuation of IRS instruments, which is mainly related to the increase in the level of market interest rates.