DHL 2009 Annual Report Download - page 156

Fair value option
 e Group applied the fair value option for the  rst time for
 nancial year . Under this option,  nancial assets or  nan-
cial liabilities may be measured at fair value through pro t or loss
on initial recognition if this eliminates or signi cantly reduces a
measurement or recognition inconsistency (accounting mismatch).
 e Group makes use of the option in order to avoid accounting
mismatches.
Financial assets
Financial assets are accounted for in accordance with the pro-
visions of  , which distinguishes between four categories of
 nancial instruments.
Available-for-sale fi nancial assets
 ese  nancial instruments are non-derivative  nancial as-
sets and are carried at their fair value, where this can be measured
reliably. If a fair value cannot be determined, they are carried at
cost. Changes in fair value between reporting dates are generally
recognised in other comprehensive income (revaluation reserve).
 e reserve is reversed to income either upon disposal or if the fair
value falls below cost more than temporarily. If, at a subsequent
balance sheet date, the fair value of a debt instrument has increased
objectively as a result of events occurring a er the impairment loss
was recognised, the impairment loss is reversed in the appropriate
amount. Impairment losses recognised in respect of equity instru-
ments may not be reversed to income. If equity instruments are
recognised at fair value, any reversals must be recognised in other
comprehensive income. No reversals may be made in the case of
equity instruments that were recognised at cost. Available-for-sale
 nancial instruments are allocated to non-current assets unless the
intention is to dispose of them within  months of the balance
sheet date. In particular, investments in unconsolidated subsidiar-
ies, marketable securities and other equity investments are reported
in this category.
Held-to-maturity fi nancial assets
Financial instruments are assigned to this category if there is
an intention to hold the instrument to maturity and the economic
conditions for doing so are met.  ese  nancial instruments are
non-derivative  nancial assets that are measured at amortised cost
using the e ective interest method.
Finance leases
A lease  nancing transaction is an agreement in which the
lessor conveys to the lessee the right to use an asset for a speci ed
period in return for a payment or a number of payments. In accord-
ance with  , bene cial ownership of leased assets is attributed
to the lessee if the lessee bears substantially all risks and rewards
incident to ownership of the leased asset. To the extent that bene -
cial ownership is attributable to the Group, the asset is capitalised
at the date on which use starts, either at fair value or at the present
value of the minimum lease payments if this is less than the fair
value. A lease liability in the same amount is recognised under non-
current liabilities.  e lease is measured subsequently at amortised
cost using the e ective interest method.  e depreciation methods
and estimated useful lives correspond to those of comparable pur-
chased assets.
Operating leases
For operating leases, the Group reports the leased asset at am-
ortised cost as an asset under property, plant and equipment where
it is the lessor.  e lease payments recognised in the period are
shown under other operating income. Where the Group is the les-
see, the lease payments made are recognised as lease expense under
materials expense. Lease expenses and income are recognised using
the straight-line method.
Investments in associates
Investments in associates are accounted for using the equity
method in accordance with   (Accounting for Investments in
Associates). Based on the cost of acquisition at the time of pur-
chase of the investments, the carrying amount of the investment
is increased or reduced annually to re ect the share of earnings,
dividends distributed and other changes in the equity of the as-
sociates attributable to the investments of Deutsche Post  or its
consolidated subsidiaries.  e goodwill contained in the carrying
amounts of the investments is accounted for in accordance with
 . Investments in companies accounted for using the equity
method are impaired if the recoverable amount falls below the car-
rying amount.
Financial instruments
A  nancial instrument is any contract that gives rise to a  nan-
cial asset of one entity and a  nancial liability or equity instrument
of another entity. Financial assets include in particular cash and
cash equivalents, trade receivables, originated loans and receivables,
and derivative  nancial assets held for trading. Financial liabilities
include contractual obligations to deliver cash or another  nancial
asset to another entity.  ese mainly comprise trade payables, li-
abilities to banks, liabilities arising from bonds and  nance leases,
and derivative  nancial liabilities.
Deutsche Post DHL Annual Report 
Consolidated Financial Statements
Notes
Basis of preparation
139