Download - Salzgitter AG

The financial instruments are attributed to the non-current assets if management does not intend to
sell them within 12 months of the reporting date.
In principle, all purchases and sales of financial assets made on customary market terms are recognized
as of the settlement date in the Salzgitter Group, i.e. on the date on which the asset is delivered to or
by the Group.
Financial assets are initially reported at their fair value; financial instruments that do not belong to the
“financial assets held for trading” category are initially reported at their fair value plus transaction
costs.
Financial instruments in the “available-for-sale financial assets”, “derivatives with documented hedging
arrangements” and “financial assets held for trading” categories are reported in the subsequent valuation
at fair value. The subsequent valuation of “loans and receivables originated by the company” and
“held-to-maturity investments” is carried out at amortized cost using the effective yield method.
The fair values of listed shares are determined on the basis of their closing prices in electronic trading.
Immaterial non-listed shares are valued at their acquisition cost, as there is no price from an active
market and the fair value cannot be ascertained reliably.
Forward exchange contracts are valued using the Group’s own calculations. The outright rates applicable
for the reporting date were determined on the basis of the ECB’s reference rates for the respective
currency pairings and the interest rate differences between the various terms of the forward exchange
contracts. Working on the assumption of standardized terms, the interest rate differences between
the actual terms were determined by means of interpolation. Information on the standardized terms
was obtained from a standard market information system. The difference ascertained between the
contractually agreed foreign exchange amount at the forward exchange rate and the cut-off date
exchange rate is discounted as of the reporting date using the euro interest rate in accordance with
the remaining term to maturity.
The other derivatives are valued on the basis of calculations made by the issuing banks using recognized
methods (e.g. Black-Scholes, Heath-Jarrow-Morton).
Unrealized gains and losses arising from changes in the fair value of financial instruments in the
“available-for-sale financial assets” category are posted to equity. If assets in this category are sold,
the cumulative adjustments to fair value under equity are posted as gains or losses from financial assets
to the income statement.