PDF (7.3 MB) - GILDEMEISTER Interim Report 3rd Quarter 2012

Consolidated Financial Statements of gildemeister Aktiengesellschaft: Notes to the Consolidated Financial Statements 151asset. Derivative financial instruments are accounted for at the trading date. Financialinstruments entered as financial assets and financial liabilities are, as a rule, reported asunbalanced, they are only balanced insofar as a set-off claim exists and it is intended tobring about settlement on a net basis.Financial assets are measured at fair value on initial recognition. At the same timethe directly attributable transaction costs must be taken into account for financial assets,which, as a result of measurement at fair value, do not affect net income. The fair valuesrecognised in the balance sheet generally correspond to the market prices of the financialassets. If these are not directly available through recourse to an active market, they arecalculated by applying recognised valuation models and on the basis of standard marketinterest rates. In financial year 2010 and in the previous year, financial asset conditionswere not re-negotiated.In accounting, ias 39 differentiates between financial assets in the classifications“loans and receivables”, “available for sale”, “held to maturity”, and “at fair valuethrough profit and loss”. The latter, pursuant to the Standard, is once again assigned tothe subcategories “held for trading” and “for initial recognition to be measured at fairvalue in the statement of the financial position” (the so-called “fair value option”). Usehas not been made of this option neither for financial assets nor for financial liabilities.Assigned to the category “held to maturity” are non-derivative financial assets with afixed or defined payment and a fixed term, which gildemeister intends to and may holduntil maturity.The “available for sale” category represents for gildemeister the residual amountof original financial assets, which fall under the application of ias 39 and have not beenassigned to any other category. Essentially, this comprises equity securities such as equityinterests in joint ventures as well as equity interests in associates and other equityinvestments. Measurement takes place in principle at fair value. Any gains or losses frommeasuring at fair value are recognised in equity. This does not apply if it involves a permanentor significant impairment, which is recognised in profit or loss. Only upon thedivestiture of the financial assets are the accumulated profits and losses in equity recognisedfrom the measurement at fair value in the income statement. The fair value of nonlistedequity instruments is assessed in principle according to the discounted cash flowmethod. If the fair value cannot be sufficiently and reliably measured, the shares aremeasured at purchase price (if necessary, less impairment). In the financial year 2010,changes in the value of financial assets held for sale in an amount of € 11,681 k (previousyear: € –3,095 k), were recognised directly in equity and no changes in value arose thatwere recognised in the income statement.consolidated financialstatements