Unilever 2013 Annual Report Download - page 129

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17 INVESTMENT AND RETURN CONTINUED
(I) HELDTOMATURITY INVESTMENTS
These are assets with set cash flows and fixed maturities which Unilever intends to hold to maturity. They are held at cost plus
interest using the effective interest method, less any impairment.
(II) LOANS AND REEIVABLES
These are assets with an established payment profile and which are not listed on a recognised stock exchange. They are initially
recognised at fair value, which is usually the original invoice amount plus any directly related transaction costs. Afterwards, loans
and receivables are carried at amortised cost, less any impairment.
(III) AVAILABLEFORSALE FINANIAL ASSETS
Any financial assets not classified as either loans and receivables or financial assets at fair value through profit or loss are
designated as available-for-sale. They are initially recognised at fair value, usually the original invoice amount plus any directly
related transaction costs. Afterwards, they are measured at fair value with changes being recognised in equity. When the
investment is sold or impaired, the accumulated gains and losses are moved from equity to the income statement. Interest and
dividends from these assets are recognised in the income statement.
(IV) FINANIAL ASSETS AT FAIR VALUE THROUH PROFIT OR LOSS
These are derivatives and assets that are held for trading. Related transaction costs are expensed as incurred. Unless they form
part of a hedging relationship, these assets are held at fair value, with changes being recognised in the income statement.
IMPAIRMENT OF FINANIAL ASSETS
Each year, the Group assesses whether there is evidence that financial assets are impaired. A significant or prolonged fall in value
below the cost of an asset generally indicates that an asset may be impaired. If impaired, financial assets are written down to their
estimated recoverable amount. Impairment losses on assets classified as loans and receivables are recognised in profit and loss.
When a later event causes the impairment losses to decrease, the reduction in impairment loss is also recognised in profit and loss.
Impairment losses on assets classified as available-for-sale are recognised by moving the loss accumulated in equity to the income
statement. Any subsequent recovery in value of an available-for-sale debt security is recognised within profit and loss. However, any
subsequent recovery in value of an equity security is recognised within equity, and is recorded at amortised cost.
17A. FINANCIAL ASSETS
The Group’s treasury function aims to protect the Group’s financial investments, while maximising returns. The Group’s cash resources
and other financial assets are shown below.
Fnancal assets(a)
 mllon
urrent
2013
 mllon
Non-
current
2013
 mllon
Total
2013
€ million
Current
2012
€ million
Non-
current
2012
€ million
Total
2012
ash and cash equvalents
Cash at bank and in hand 834 –834 831 –831
Short-term deposits with maturity of less than three months 1,360 –1,360 1,495 –1,495
Other cash equivalents 91 –91 139 –139
2,285 –2,285 2,465 –2,465
Other fnancal assets
Held-to-maturity investments 72 375 26 329
Loans and receivables(b) 100 4104 2 1 3
Available-for-sale financial assets(c) 274 486 760 183 504 687
Financial assets at fair value through profit or loss:
Derivatives 294 –294 170 –170
Other 20 12 32 20 27 47
760 505 1,265 401 535 936
Total 3,045 505 3,550 2,866 535 3,401
(a) For the purposes of notes 15C and 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities
which are covered in notes 13 and 14 respectively.
(b) Current loans and receivables include short-term deposits with banks with maturities of longer than three months.
(c) Current available-for-sale financial assets include government securities and A- or higher rated money and capital market instruments. Non-current
available-for-sale financial assets predominantly consist of investments in a number of companies and financial institutions in Europe, India and the US,
including €84 million (2012: €98 million) of assets in a trust to fund benefit obligations in the US (see also note 4B on page 103).
126 Unlever Annual Report and Accounts 2013Fnancal statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED