Uster Technologies Ltd | Annual Report 2009 Uster Technologies ...

Held-to-maturity InvestmentsHeld-to-maturity investments are non-derivative financial instruments which carry fixed or determinablepayments and fixed maturities and which the Group has the positive intention and ability to hold tomaturity. The Group did not have financial instruments falling under this category on December 31, 2009or 2008.Available-for-sale Financial AssetsAvailable-for-sale financial assets are those non-derivative financial instruments that are designated asavailable-for-sale or are not classified in any of the three preceding categories. As of December 31, 2009 and2008, no financial assets have been designated as available-for-sale financial assets.Financial Liabilities at Fair Value through Profit or LossFinancial liabilities at fair value through profit or loss include financial liabilities held for trading. Afinancial liability falls under this category if entered into principally for the purpose of repayment in theshort-term. Liabilities in this category are classified as current liabilities.Subsequent to initial recognition financial liabilities at fair value through profit or loss are measured at fairvalue, and changes therein are recognized in profit or loss.As of December 31, 2009, the Group held one derivative financial instrument (see note 4.3 Market Risk) tohedge its interest rate risk exposure on the bank loans. This interest rate swap, however, does not qualify asa hedge accounting instrument according to IAS 39.It is recognized initially at fair value (as an asset or liability at fair value through profit or loss) and any gainsor losses resulting from the valuation at market value are taken through profit or loss as incurred.Financial Liabilities at Amortized CostAll loans and borrowings are initially recognized at fair value less directly attributable transaction costs.Subsequently they are measured at amortized cost, using the effective interest method. Gains and losses arerecognized in the Statement of Comprehensive Income when the liabilities are derecognized as well as throughthe amortization process.As of December 31, 2009 and 2008, the Group had bank loans as well as trade and other liabilities that qualifiedas financial liabilities at amortized cost (see notes 22 Bank Loans and, 24 Trade and Other Liabilities).Accounting for finance income and expenses is discussed in note 3.14 Finance Income and Expenses.Share CapitalOrdinary SharesOrdinary shares are classified as equity. Transaction costs directly attributable to the issue of ordinary sharesare recognized as a deduction from equity net of any tax effects.Treasury SharesWhen share capital recognized as equity is repurchased, the amount of the consideration paid is recognizedas a deduction from equity. When treasury shares are sold or reissued subsequently, the amount received isrecognized as an increase in equity and the resulting surplus or deficit on the transaction is recorded inretained earnings. As of December 31, 2009 and 2008, the Group did not have any treasury shares.Uster Group – Notes to the Consolidated Financial Statements 2009 65