Technologies · Systems · Solutions - Dürr

120
Accounting and disclosure
of derivative financial
instruments and hedge
accounting
35. Additional local
disclosure requirements
Exemption pursuant to
Sec. 264b No. 4 of the HGB
Exemption from the requirement
to prepare consolidated
financial statements
for a Spanish sub-group
On the balance sheet date the Company had the following derivatives:
Amounts in €k
The fair value of the derivative financial instruments was estimated using the following methods
and assumptions: The fair values of currency swaps were estimated on the basis of the difference
between the contractually agreed exchange rates and forward rates prevailing on the balance sheet
date. The fair values of the interest rate swaps are estimated as the present value of expected
future cash flows.
Nominal value Positive fair value Negative fair value
Dec. 31, 2004 Dec. 31, 2003 Dec. 31, 2004 Dec. 31, 2003 Dec. 31, 2004 Dec. 31, 2003
Derivative financial
instruments
Interest swaps
Forward exchange
34,663 279,347 – – –1,315 –15,081
contracts 203,656 101,543 6,835 6,320 –1,196 –1,864
Currency swaps and interest rate swaps are recognized in the consolidated balance sheet at fair
value. If the criteria for hedge accounting are fulfilled, the changes in fair value are accounted
for as cash flow hedges as described in the following paragraph. Otherwise the changes in market
value are recorded in the consolidated income statement as of each balance sheet date.
Cash flow hedges
The effective portion of the change in market value of interest swaps and forward exchange transactions
classified as cash flow hedges is recorded through other comprehensive income. When
the hedged transaction affects earnings, the amount from the interest swaps and forward exchange
transactions recorded in other comprehensive income is reclassified into interest expense (interest
swaps) and cost of sales (forward exchange contracts) in the income statement. Due to the
ineffectiveness of the interest swaps, a net loss of € 9 thousand (2003: net loss of € 112 thousand)
was recorded for the 2004 reporting period. Due to the improved liquidity situation, the interest
hedges of a number of expected liabilities to banks were discontinued in the 2003 reporting period
and losses were reclassified from equity to the income statement. It is anticipated that through
the occurrence of the underlying € 120 thousand (2003: € 210 thousand) of net losses included in
other comprehensive income will be reclassified into income during the next 12 months upon
realization of the hedged interest payments.
The company Premier Manufacturing Support Services GmbH & Co. KG, Stuttgart, has made use
of the exemption provision of Sec. 264b No. 4 of the HGB.
The company Ingenieria Agullo S.A., Barcelona (Spain), has made use of the exemption option
from the preparation of consolidated financial statements pursuant to Spanish law.