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ePaper created 2015-05-06, 08:22:31 | version 1.38.0
62 Derivative financial instruments Measurement of derivatives subsequent to initial recognition is at fair value. Commodity futures to which the own-use exemption pursuant to IAS 39 does not apply are separated from the own-use portfolio and recognized at fair value as held for trading in accordance with IAS 39. The treatment of changes in fair value also depends on whether hedge accounting as defined by IAS 39 is applied. If hedge accounting is not applied for transactions used commercially to hedge currency, price, or interest-rate risk, changes in fair value are recognized in profit or loss. If hedge accounting is applied, derivatives are designated on the date they are contractually agreed either as instruments for hedging the fair value of certain assets and liabilities recognized on the balance sheet (fair value hedges) or as instruments for hedging future cash flows (cash flow hedges). In the case of fair value hedges, the hedging instrument and the underlying transaction are both measured at fair value and changes in that fair value are recognized through profit or loss in net financial income/net finance costs. In the context of cash flow hedges, changes in the market price of the effective part of hedging instruments are recognized in other comprehensive income, taking deferred taxes into account. Only at the time that the corresponding losses or gains on the underlying transaction are realized are the cumulated adjustments to equity recognized in profit or loss. l) Liabilities Liabilities are recognized at fair value less transaction costs. Non-current liabilities and financial debt are discounted at a market interest rate applicable to their term if the amounts are material and the liabilities do not carry a contractual interest rate or carry an interest rate that is not appropriate to their term. Liabilities arising from finance leases are recognized on the balance sheet at the lower of the fair value of the leased asset or the present value of the minimum lease payments at the inception of the lease.