Hornbach-Baumarkt-AG Group

114 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Notes on the Consolidated Income Statement
(7) Net financial expenses
2012/2013 2011/2012
€ 000s € 000s
Other interest and similar income
Interest income on financial instruments measured at amortized cost 1,950 5,833
of which: from affiliated companies 23 23
Other 150 150
of which: from affiliated companies 150 150
2,100 5,983
Other interest and similar expenses
Interest expenses on financial instruments measured at amortized cost 22,982 21,737
of which: to affiliated companies 1 0
Interest expenses on financial instruments used as hedging instruments 1,798 1,650
Interest expenses from compounding of provisions 16 753
Other 1,323 1,105
of which: to affiliated companies 160 187
26,119 25,245
Net interest expenses (24,019) (19,262)
Other financial result
Gains/losses on derivative financial instruments (576) 238
Gains and losses from foreign currency exchange (352) (2,937)
(928) (2,699)
Net financial expenses (24,947) (21,961)
In line with IAS 17 “Leases”, financial leasing contracts are recognized under property, plant and equipment,
with the interest component of the leasing installments, amounting to € 93k (2011/2012: € 107k) being
recognized under interest and similar expenses. Net interest expenses do not include interest incurred for
financing the construction stage of real estate development measures. This interest amounted to € 2,637k in
the year under report (2011/2012: € 2,432k) and has been capitalized as a component of the costs of the
property, plant and equipment concerned. As in the previous year, the average financing cost rate used to
determine the volume of borrowing costs eligible for capitalization amounted to 5.9%.
(Deferred) interest payments on interest swaps included as a hedging instrument within cash flow hedges
pursuant to IAS 39 are netted for each swap contract and recognized on the basis of their net amount either
as interest income or interest expenses.
Gains/losses on derivative financial instruments include gains and losses of € -576k on derivative currency
instruments (2011/2012: € 405k). The previous year’s figure also includes the ineffective portion,
amounting to € -167k, of the change in value of an interest swap deployed as a hedging instrument in a
hedging relationship pursuant to IAS 39. The hedged item and hedging transaction expired as of June 30, 2011.