DHL 2015 Annual Report Download - page 152

Deutsche Post  Group —  Annual Report
--  
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.
  
ese are non-derivative nancial assets with xed or determinable
payments that are not quoted on an active market. Unless held for
trading, they are recognised at cost or amortised cost at the balance
sheet date. e carrying amounts of money market receivables cor-
respond approximately to their fair values due to their short matur-
ity. Loans and receivables are considered current assets if they
mature not more than twelve months aer the balance sheet date;
otherwise, they are recognised as non-current assets. If the recov-
erability of receivables is in doubt, they are recognised at amortised
cost, less appropriate specic or collective valuation allowances. A
write-down on trade receivables is recognised if there are objective
indications that the amount of the outstanding receivable cannot be
collected in full. e write-down is recognised in the income state-
ment via a valuation account.
        
All nancial instruments held for trading and derivatives that do
not satisfy the criteria for hedge accounting are assigned to this
category. 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 twelve 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 indications
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 object-
ive reasons arising aer the balance sheet date indicating that the
reasons for impairment no longer exist. e increased carrying
amount resulting from the reversal of the impairment loss may not
exceed the carrying amount that would have been determined (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 nan-
cial 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 unrecognised
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 recog-
nised 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 recog-
nised 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 obligations
arising from them have expired.
142