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Part 3 - Financial statements
101
Forward currency contracts used to hedge the transactional
risks on currencies are accounted as if they were held
for trading.
However, such forward currency contracts are only used
to hedge existing transactions and commitments and are
therefore not speculative by nature.
The fair values were directly recognized in the income
statement in unrealized exchange gains or losses.
37. FINANCIAL INSTRUMENTS
Financial Assets and Liabilities
in EUR ‘000’ 31/12/12 31/12/11 31/12/10 Hierarchy of
fair values
Financial Assets
Cash and cash equivalents 83 925 83 227 68 077
Available-for-sale financial assets 2 357 3 906 6 632 Level 2
Loans and receivables 129 532 86 942 97 632
Derivative financial assets 105 775 26 046 16 230 Level 1
Total 321 589 200 121 188 571
Financial Liabilities
Borrowings at amortized cost 132 482 122 519 80 953
Other payables 107 690 71 914 66 551
Derivative financial liabilities 107 215 26 690 16 101 Level 1
Total 347 387 221 123 163 605
In order to show the importance of data used for the
valuations of fair values, the Group classifies these
valuations according to the following hierarchy :
■ Level 1 : fair value measurements are those derived
from quoted prices (unadjusted) in active markets
for identical assets or liabilities;
■ Level 2 : fair value measurements are those derived from
inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices) ;
■ Level 3 : fair value measurements are those derived
from valuation techniques that include inputs for the
asset or liability that are not based on observable
market data (unobservable inputs).
Financial assets are mostly current. Their fair value
does thus not differ from their book value. Their book
value already takes into account possible provisions
when the collection seems compromised.
Available-for-sale financial assets are made of investments
in various small companies not quoted on the stock market
and valued at their acquisition value. Their fair value is
higher than their acquisition value but given the fact that the
impact is minimal, no correction has been accounted for.
Non-current financial liabilities were evaluated at
amortized cost ; which is net of transaction costs.
Borrowings principally include the renegotiated debt at
the end of the year for which the fair value is comparable
to the value in the accounts. “Other payables” are mainly
trade payables for which the fair value does not differ
from the book value due to its current nature.
Derivative financial assets and liabilities only include
forward currency contracts. These last ones are included
in this note on the asset and liability sides for their notional
amount corrected by their fair value at the asset and liability
side depending whether they are positive or negative.