Please activate JavaScript!
Please install Adobe Flash Player, click here for download
ePaper created 2015-05-06, 08:22:31 | version 1.38.0
61HERAEUS | FINANCIAL REPORT 2014 | CONSOLIDATED FINANCIAL STATEMENTS Financial liabilities are classified into the following categories: • financial liabilities measured at fair value through profit or loss (derivatives with negative fair value classed as held for trading, financial liabilities held for trading (FLHfT)) and • other financial liabilities (financial liabilities measured at amortized cost (FLAC)). Classification depends on the purpose for which financial assets are purchased and financial liabilities are incurred. Financial instruments are classified as available-for-sale if they are not loans and receivables or held-to-maturity investments and are not measured at fair value through profit or loss. The management determines the classification of financial assets and financial liabilities at the time of initial recognition and reviews their classification at every balance sheet date. Regular way purchases and sales of financial instruments are recognized at their settlement date, while derivatives are recognized at their trade date. Initial measurement is at fair value. Transaction costs directly attributable to financial instruments that are not classified as at fair value through profit or loss are also recognized on initial measurement. Subsequent measurement depends on their classification. Any impairment losses are recognized for individual financial instruments if there is objective evidence for doing so and future cash flows are not expected to be received in full. A deterioration in the credit rating of the debtor or market values falling for a sustained period constitute objective evidence of impairment. If the reasons for recognizing impairment losses cease to exist, they are reversed. Non-derivative financial instruments Loans and receivables, held-to-maturity investments, and other financial liabilities are recognized at amortized cost using the effective interest method. Available-for-sale financial assets and financial assets and financial liabilities measured at fair value through profit and loss are measured at their fair value on the basis of their listed market prices as of the balance sheet date. Other investments are classified as financial assets available for sale. Because there is no active market for them, they are measured at cost. Changes in the market price of available-for-sale financial assets are recognized in other comprehensive income net of deferred taxes. Only when these assets are sold or permanently impaired are the cumu- lative adjustments to fair value reclassified from equity to profit or loss and presented in net financial income/net finance costs.