Airbus 2015 Annual Report Download - page 251

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 69 l
Notes to the IFRSConsolidatedFinancialStatements
2.
2.7 Capital Structure and Financial Instruments
35.2 Carrying Amounts and Fair Values of Financial Instruments
Financial instruments — The Group’s financial assets
mainly consist in cash, short to medium-term deposits and
securities. The Group’s financial liabilities include trade liabilities,
obligations towards financial institutions, issued bonds and
refundable advances from European governments. All
purchases and sales of financial assets are recognised on the
settlement date according to market conventions. The Group
classifies its financial assets in the following three categories:
(i) at fair value through profit or loss, (ii) loans and receivables
and (iii) available-for-sale financial assets. Their classification is
determined by management when first recognised and depends
on the purpose for their acquisition.
Within the Group, all investments in entities which do not qualify
for consolidation or equity-method accounting are classified as
non-current available-for-sale financial assets. They are included
in the line other investments and other long-term financial assets
in the Consolidated Statement of Financial Position.
Available-for-sale financial assets — Financial assets
classified as available-for-sale are accounted for at fair value.
Changes in their fair value other than impairment losses and
foreign exchange gains and losses on monetary items are
recognised directly within AOCI. As soon as such financial
assets are sold or otherwise disposed of, or are determined to
be impaired, the cumulative gain or loss previously recognised
in equity is recorded as part of other income (other expense)
from investments in the Consolidated Income Statement for
the period. Interest earned on the investment is presented as
interest income in the Consolidated Income Statement using the
effective interest method. Dividends earned on investment are
recognised as other income (other expense) from investments
in the Consolidated Income Statement when the right to the
payment has been established.
In case of the impairment of debt instruments classified as
available-for-sale, interest continues to be accrued at the original
effective interest rate on the reduced carrying amount of the
asset and is recorded in financial result. If, in a subsequent year,
the fair value of a debt instrument increases and the increase can
be objectively related to an event occurring after the impairment
loss was recognised in the Consolidated Income Statement, the
impairment loss is reversed through the Consolidated Income
Statement.
Financial assets at fair value through profit or loss —
Within the Group, only derivatives not designated as hedges
are categorised as held for trading. Furthermore, the Group
designates certain financial assets (such as investments in
accumulated money market funds) at fair value through profit
or loss at initial recognition if they are part of a group of financial
assets that is managed and its performance is evaluated on a fair
value basis, in accordance with a documented risk management
or investment strategy.
The Group assigns its financial instruments into classes based
on their balance sheet category.
Financial Statements 2015
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Annual Report 2015 Financial Statements 2015
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