DHL 2014 Annual Report Download - page 156

        
All nancial instruments held for trading and derivatives that do
not satisfy the criteria for hedge accounting are assigned to this cat-
egory. ey are generally measured at fair value. All changes in fair
value are recognised in income. All nancial instruments in this
category are accounted for at the trade date. Assets in this category
are recognised as current assets if they are either held for trading
or will likely be realised within  months of the balance sheet date.
To avoid variations in earnings resulting from changes in the
fair value of derivative nancial instruments, hedge accounting is
applied where possible and economically useful. Gains and losses
from the derivative and the related hedged item are recognised in
income simultaneously. Depending on the hedged item and the risk
to be hedged, the Group uses fair value hedges and cash ow hedges.
e carrying amounts of nancial assets not carried at fair
value through prot or loss are tested for impairment at each bal-
ance sheet date and whenever there are indications of impairment.
e amount of any impairment loss is determined by comparing
the carrying amount and the fair value. If there are objective in-
dications of impairment, an impairment loss is recognised in the
income statement under other operating expenses or net nancial
income / net nance costs. Impairment losses are reversed if there
are objective reasons arising aer the balance sheet date indicat-
ing that the reasons for impairment no longer exist. e increased
carry ing amount resulting from the reversal of the impairment loss
may not exceed the carrying amount that would have been deter-
mined (net of amortisation or depreciation) if the impairment loss
had not been recognised. Impairment losses are recognised within
the Group if the debtor is experiencing signicant nancial di-
culties, it is highly probable that the debtor will be the subject of
bankruptcy proceedings, there are material changes in the issuer’s
technological, economic, legal or market environment, or the fair
value of a nancial instrument falls below its amortised cost for a
prolonged period.
A fair value hedge hedges the fair value of recognised assets
and liabilities. Changes in the fair value of both the derivatives and
the hedged item are recognised in income simultaneously.
A cash ow hedge hedges the uctuations in future cash ows
from recognised assets and liabilities (in the case of interest rate
risks), highly probable forecast transactions as well as unrecog-
nised rm commitments that entail a currency risk. e eective
portion of a cash ow hedge is recognised in the hedging reserve in
equity. Ineective portions resulting from changes in the fair value
of the hedging instrument are recognised directly in income. e
gains and losses generated by the hedging transactions are initially
recognised in equity and are then reclassied to prot or loss in
the period in which the asset acquired or liability assumed aects
prot or loss. If a hedge of a rm commitment subsequently results
in the recognition of a non-nancial asset, the gains and losses
recognised directly in equity are included in the initial carrying
amount of the asset (basis adjustment).
Net investment hedges in foreign entities are treated in the
same way as cash ow hedges. e gain or loss from the eective
portion of the hedge is recognised in other comprehensive income,
whilst the gain or loss attributable to the ineective portion is rec-
ognised directly in income. e gains or losses recognised in other
comprehensive income remain there until the disposal or partial
disposal of the net investment. Detailed information on hedging
transactions can be found in Note ..
Regular way purchases and sales of nancial assets are recog-
nised at the settlement date, with the exception of held-for-trading
instruments, particularly derivatives. A nancial asset is derecog-
nised if the rights to receive the cash ows from the asset have ex-
pired. Upon transfer of a nancial asset, a review is made under the
requirements of   governing disposal as to whether the asset
should be derecognised. A disposal gain / loss arises upon disposal.
e remeasurement gains / losses recognised in other comprehen-
sive income in prior periods must be reversed as at the disposal
date. Financial liabilities are derecognised if the payment obliga-
tions arising from them have expired.
Investment property
In accordance with  , investment property is property held
to earn rentals or for capital appreciation or both, rather than for
use in the supply of services, for administrative purposes, or for
sale in the normal course of the company’s business. It is meas-
ured in accordance with the cost model. Depreciable investment
property is depreciated over a period of between  and  years
using the straight-line method. e fair value is determined on
the basis of expert opinions. Impairment losses are recognised in
accordance with the principles described under the section headed
Impairment.
Deutsche Post  Group —  Annual Report
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