Service-oriented - Die Schweizerische Post

102 Annual Report | Financial Report | Financial statements of Swiss Post Group
Financial receivables
Receivables due from banks and interest­bearing amounts due from customers (technically overdrawn Yellow
Accounts) are measured at amortized cost under the effective interest method and usually correspond to
the face value. If there are specific doubts as to a borrower’s creditworthiness, an appropriate impairment
charge may be recognized.
Trade accounts receivable and other receivables
Trade accounts receivable and other receivables are carried in the balance sheet at amortized cost, which
usually corresponds to the face value, minus an impairment charge for doubtful receivables.
Inventories
Inventories comprise resale merchandise, fuel and operating materials. They are measured at the lower of
historical or manufacturing cost and fair value less costs to sell. The historical or manufacturing cost is determined
according to the weighted average cost method. Appropriate impairments are recognized for inventories
that are not easily marketable.
Financial assets
Financial assets acquired with the aim of generating short­term gains by making targeted use of fluctuations in
market prices are measured as financial assets at fair value, i.e. they are classified as at “Fair value through
profit or loss, held for trading”. Fair value changes in this category are taken to the income statement. Swiss
Post has not so far designated any financial assets as at fair value through profit or loss at initial recognition.
Financial assets with a fixed term to maturity, where Swiss Post has the positive intent and ability to hold them
until maturity, are classed as “Held to maturity“ and carried in the balance sheet at amortized cost under
the effective interest method. The effective interest method distributes the difference between the historical
and repayment value (premium/discount) over the term to maturity of the asset in question using the annuity
method. This results in a constant rate of interest until maturity.
Other financial assets, which are held for an indefinite period and can be sold at any time for liquidity reasons
or in reaction to changing market conditions, are classed as “available for sale“ and are recognized at their
fair value. Unrealized gains and losses are recognized under “Fair value reserves“ on financial assets in equity
and are taken to the income statement only when the financial asset is sold or if an impairment is recognized.
Currency translation differences on monetary financial assets classed as “available for sale“ are taken to the
income statement.
Loans granted by Swiss Post are carried in the balance sheet at amortized cost. Financial assets are entered in
the balance sheet as at their due date.
Swiss Post checks its financial assets on a regular basis for any indication that an asset may be impaired. If
there are indications that an asset is impaired, the recoverable amount is estimated. The recoverable amount
on interest­bearing assets and loans is the present value of expected future cash flows from interest payments
and repayments. The present value of “held to maturity” assets and loans is calculated on the basis of the
original effective rate of interest on the financial assets in question. If the recoverable amount is less than the
carrying amount of a financial asset, the difference is entered as an impairment in the income statement.
The present value of “available­for­sale” financial assets is calculated at the current market interest rate. If an
impairment is recognized on an “available­for­sale” financial asset, the cumulative net loss on this asset recognized
in equity is eliminated from equity and taken to the income statement. If the fair value of an interestbearing
asset such as a bond is less than the carrying amount solely due to a change in market interest rates,
no impairment is recognized provided the issuer’s credit standing is considered to be good. In this case, the
change in the fair value of financial assets classed as “available for sale” is taken directly to equity. Writedowns
of equity instruments in the “available­for­sale” category are recognized if a significant (i.e. loss of 20 percent
on the original purchase price) or prolonged (i.e. lasting nine months or more) reduction in fair value is identified.
No reversals of impairment losses are recognized in the income statement until the assets’ disposal; positive
changes in value are taken directly to equity.
Derivative financial instruments are used mainly to hedge currency and interest rate risks and to a small extent
for trading.
Hedge accounting is applied if derivative financial instruments are effective in offsetting changes in fair value
or cash flows attributable to the hedged risks. The effectiveness of these hedges is reviewed every six months.
Fair value hedges are used to hedge exposure to changes in fair value of an asset or liability. Changes in the
fair value of both the hedging instrument and the hedged item are recognized in the income statement.