DHL 2001 Annual Report Download - page 112

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112
Application of IAS 39 resulted in the changes
in presentation,recognition and measurement
described below. More detailed explanations are
contained in the notes to the relevant balance sheet
items, in particular to those items representing the
business operations of the Deutsche Postbank
group.
IAS 39 defines the following four categories of
financial instruments:
Held-to-maturity financial instruments are
financial assets that the company has the positive
intent and ability to hold to maturity.Fixed or
determinable payments are also necessary. These
financial instruments are measured at amortized
cost. No financial assets classified as held-to-matu-
rity financial instruments are carried in the non-
current assets of Deutsche Post World Net. The
Deutsche Postbank group reports held-to-maturity
financial instruments amounting to €4,167 million
under “Receivables and investment securities from
financial services”(see note 27 ff.).
Financial assets amounting to €41,922 million
were classified as available for sale, of which the
Deutsche Postbank group holds €41,634 million
and the other companies of the Post Group €288
million. These relate to financial instruments that
are available for sale. They are generally measured
at their fair values, where these can be measured
reliably, or if not, at amortized cost. Deutsche Post
World Net has made use of the option to generally
recognize changes in the fair values of these finan-
cial instruments directly in equity.
Assets and liabilities classified as loans, receiv-
ables and liabilities originated by the enterprise relate
largely to originated loans, receivables, financial
instruments and liabilities. These are generally mea-
sured at amortized cost or redemption amounts.
This did not result in any measurement and account-
ing changes in the Group.
All assets and liabilities held for trading, as well
as derivatives, were allocated to the held for trading
category. They are generally measured at their fair
values and all changes in fair values are recognized
in income. Financial assets in the amount of €2,613
million were classified by the Deutsche Postbank
group as held for trading and are carried under
“Receivables and investment securities from financial
services”. Financial instruments held for trading with
negative fair values were reported under “Liabilities
from financial services” in the amount of €2,973
million. The other companies in Deutsche Post
World Net reported derivatives with negative fair
values amounting to €14 million under “Other liabil-
ities”.
In accordance with IAS 39, all derivatives are
measured at their fair values, with remeasurement
gains and losses recognized in income, even if they
do not satisfy the strict criteria for hedge accounting
set out in IAS 39.142. Fair value measurement is
also applied irrespective of the effectiveness of the
hedges.
IAS 39 restricts the recognition of hedges (hedge
accounting). For example, only hedges that are
classified as effective in accordance with IAS 39.146
qualify for hedge accounting.A distinction is made
between ineffective and effective hedges.
In the case of fair value hedges,assets and liabil-
ities are hedged against changes in value where these
changes are based on price risks. In accordance
with IAS 39.153,the gain or less on the hedged item
attributable to the hedged risk adjusts the carrying
amount of the hedged item and is recognized imme-
diately in net profit or loss.