Other investments, non-current
Loans and receivables
Loans and receivables are initially recognized at fair value and subsequently measured at amortised cost, less impairment losses, if applicable.
Financial assets at fair value through profit or loss
Financial assets are carried at fair value, with gains and losses recognised in profit or loss if the Group manages the investments and takes buying and selling decisions based on the fair value. On initial recognition, attributable transaction costs are expensed as and when incurred.
Derivative financial instruments
The sole purpose of the derivative financial instruments contracted by the Group is to cover exchange rate and interest rate risks arising from operating, financing and investing activities. The Group does not hold any derivatives for trading purposes. Derivatives that do not qualify for hedge accounting are, however, accounted for as trading instruments. On initial recognition, derivative financial instruments are carried at fair value, attributable translation costs are recognized in profit or loss. The fair value of interest rate and currency swaps is the estimated amount that would be received or paid by the Group to end the swap at balance sheet date, taking the current interest rate into account. Where derivative financial instruments are designated as hedging transactions, recognition of any gain or loss arising from the change in the fair value depends on the accounting method method for the hedged item.
Source: Annual Report 2009, Chapter Finacial Statements, page 92 (PDF, 240 kB)
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