Henkel Annual Report 2011 - Henkel AG & Co. KGaA Annual Report ...

Henkel Annual Report 2011
revaluation reserve are released through profit or loss. In the
Henkel Group, the se curities and time deposits recognized
under other financial assets and also the financial investments
are categorized as “Available for sale.” The fair values of the
securities and time deposits are based on quoted market prices.
As the fair values of the financial investments cannot be
reliably determined, they are measured at amortized cost.
The sale or disposal of these financial instruments is not
currently intended.
The derivative financial instruments not included in a designated
hedging relationship and therefore categorized as held
for trading are essentially recognized at their fair value. All
fair value changes are recognized through profit or loss. In
order to avoid profit and loss variations arising from fair
Carrying amounts and fair values of financial instruments
December 31, 2010
in million euros
Assets
Carrying
amount
December 31
Consolidated financial statements
Notes to the consolidated statement of financial position
value changes in derivative financial instruments, in individual
cases – where possible and economically sensible – hedge
accounting is applied. Depending on the type of underlying
and the risk needing to be hedged, fair value and cash flow
hedges are also designated within the Group. Details relating
to the hedging contracts transacted within the Group and
how the fair values of the derivatives are determined are
provided on pages 131 to 133.
All financial liabilities, with the exception of derivative
financial instruments, are essentially recognized at amortized
cost using the effective interest method.
Borrowings for which a hedging transaction has been concluded
that meets the requirements of IAS 39 with respect to
hedge accounting are recognized through hedge accounting.
Valuation according to IAS 39
Amortized cost Fair value Fair value
through other through profit
comprehensive
income
or loss
Fair value
December 31
Loans and receivables 3,615 3,615 – – 3,615
Trade accounts receivable 1,893 1,893 – – 1,893
Other financial assets 207 207 – – 207
Cash and cash equivalents 1,515 1,515 – – 1,515
Available for sale 384 22 362 – 384
Other financial assets 384 22 362 – 384
Held for trading
Derivative financial instruments not included in a designated
83 – – 83 83
hedging relationship
Derivative financial instruments included in a designated hedging
83 – – 83 83
relationship 248 – – 248 248
Total 4,330 3,637 362 331 4,330
Liabilities
Amortized cost 6,475 6,475 – – 6,460
Trade accounts payable 2,308 2,308 – – 2,308
Borrowings with no financial statement hedging relationship 571 571 – – 571
Borrowings with a financial statement hedging relationship 3,535 3,535 – – 3,520
Other financial liabilities 61 61 – – 61
Held for trading
Derivative financial instruments not included in a designated
89 – – 89 89
hedging relationship
Derivative financial instruments included in a designated hedging
89 – – 89 89
relationship 70 – 70 – 70
Total 6,634 6,475 70 89 6,619
129