DHL 2015 Annual Report Download - page 151

Deutsche Post  Group —  Annual Report
Finance leases
A lease 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 accordance with  , benecial
owner ship of leased assets is attributed to the lessee if the lessee
substantially bears all risks and rewards incident to ownership of
the leased asset. To the extent that benecial owner ship is attribut-
able to the Group as the lessee, 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 liabil-
ities. e lease is subsequently measured at amortised cost using the
eective interest method. e depreciation methods and estimated
useful lives correspond to those of compar able purchased assets.
Operating leases
For operating leases, the Group reports the leased asset at amortised
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 lessee, the lease
payments made are recognised as lease expenses under materials
expense. Lease expenses and income are recognised using the
straight-line method.
Investments accounted for using the equity method
Investments accounted for using the equity method cover associates
and joint ventures. ese are recognised using the equity method
in accordance with  , Investments in Associates and Joint
Ventures. Based on the cost of acquisition at the time of purchase
of the investments, the carrying amount of the investment is in-
creased or reduced annually to reect the share of earnings, divi-
dends distributed and other changes in the equity of the associates
and joint ventures attributable to the investments of Deutsche Post 
or its consolidated subsidiaries. e goodwill contained in the car-
rying amounts of the investments is accounted for in accordance
with  . Investments accounted for using the equity method are
impaired if the recoverable amount falls below the carrying amount.
Gains and losses from the disposal of investments accounted for
using the equity method, as well as impairment losses and their
reversals, are recognised in other operating income or other oper-
ating expenses.
Financial instruments
A nancial instrument is any contract that gives rise to a nancial
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 in-
clude 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.
Fair value option
Under the fair value option, nancial assets or nancial liabilities
may be measured at fair value through prot or loss on initial recog-
nition 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 provisions
of  , which distinguishes between four categories of nancial
instruments.
--  
ese nancial instruments are non-derivative nancial assets 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 recog-
nised 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 object-
ively 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 twelve months of the balance
sheet date. In particular, investments in unconsolidated subsidiaries,
marketable securities and other equity investments are reported in
this category.
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Consolidated Financial Statements — NOTES — Basis of preparation