(21) Financial Instruments


Financial instruments are contractual obligations to receive or deliver cash and cash equivalents. In accordance with IAS 32 and IAS 39, these include both primary and derivative financial instruments. Primary financial instruments include, in particular, cash and cash equivalents, trade receivables and payables, credits and loans. Derivatives primarily include forward currency transactions and interest rate hedging instruments.

The following tables show the carrying amounts and fair values of financial assets and liabilities by category of financial instruments and a reconciliation to the corresponding line item in the Group balance sheet. Since the line items “Other Receivables” and “Other Liabilities” contain both financial instruments and non-financial assets and liabilities (in particular, advance payments for services to be received/made in the future and other tax receivables/payables), the reconciliation is shown in the column headed “Outside IFRS (Glossary 7.”

 

Carrying Amounts, Amounts Recognized, and Fair Values by Measurement Category as of September 30, 2009.

€k

 

Thereof amounts recognized in balance sheet according to IAS 39

 

Category in accordance with IAS 39

Carrying amount

Thereof outside IFRS 7

Amortized costs

Fair value recognized in equity

Fair value recognized in profit or loss

Thereof amounts recognized according to IAS 17

Fair value of financial instruments under IFRS 7

LaR: Loans and Receivables

FVO: Financial Assets or Financial Liabilities designated as at Fair Value through Profit or Loss (Fair Value Option)

HfT: Financial Assets or Financial Liabilities held for trading and measured as at Fair Value through Profit or Loss (Held for Trading)

FLAC: Financial Liabilities at Amortized Costs

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

LaR

16,274

0

16,274

0

0

0

16,274

Trade receivables

LaR / n/a

314,741

0

311,131

0

0

3,610

314,741

thereof: receivables from finance leases

n/a

3,610

0

0

0

0

3,610

3,610

Receivables from related companies

LaR

330

0

330

0

0

0

330

Other receivables

LaR / n/a / HfT

62,732

55,911

6,818

7,510

3

0

6,821

thereof: derivates with a hedging relationship

n/a

7,510

7,510

0

7,510

0

0

0

thereof: derivates without a hedging relationship

HfT

3

0

0

0

3

0

3

Investments

LaR/FVO

1,463

0

402

0

1,061

0

1,463

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Trade payables

FLAC

256,862

0

256,862

0

0

0

256,862

Liabilities to related companies

FLAC

438

0

438

0

0

0

438

Financial liabilities

FLAC / n/a

166,765

0

162,648

0

0

4,117

166,765

thereof: liabilities from finance leases

n/a

4,117

0

0

0

0

4,117

4,117

Other non-interest-bearing liabilities

FLAC/n/a/HfT

174,275

117,178

56,138

3,140

959

0

57,097

thereof: derivates with a hedging relationship

n/a

3,140

3,140

0

3,140

0

0

0

thereof: derivates without a hedging relationship

HfT

959

0

0

0

959

0

959

 

 

 

 

 

 

 

 

 

Aggregated by category in accordance with IAS 39:

 

Loans and receivables

LaR

334,955

0

334,955

0

0

0

334,955

Financial assets and liabilities measured as at fair value through profit or loss (Fair Value Option)

FVO

1,061

0

0

0

1,061

0

1,061

Financial assets measured as at fair value through profit or loss (Held for Trading)

HfT

3

0

0

0

3

0

3

Financial liabilities measured as at fair value through profit or loss (Held for Trading)

HfT

959

0

0

0

959

0

959

Financial liabilities measured at amortized costs

FLAC

476,086

0

476,086

0

0

0

476,086

 

Carrying Amounts, Amounts Recognized, and Fair Values by Measurement Category as of September 30, 2008.

€k

 

Thereof amounts recognized in balance sheet according to IAS 39

 

Category in accordance with IAS 39

Carrying amount

Thereof outside IFRS 7

Amortized costs

Fair value recognized in equity

Fair value recognized in profit or loss

Thereof amounts recognized according to IAS 17

Fair value of financial instruments under IFRS 7

LaR: Loans and Receivables

FVO: Financial Assets or Financial Liabilities designated as at Fair Value through Profit or Loss (Fair Value Option)

HfT: Financial Assets or Financial Liabilities held for trading and measured as at Fair Value through Profit or Loss (Held for Trading)

FLAC: Financial Liabilities at Amortized Costs

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

LaR

16,039

0

16,039

0

0

0

16,039

Trade receivables

LaR / n/a

366,926

0

362,268

0

0

4,658

367,800

thereof: receivables from finance leases

n/a

4,658

0

0

0

0

4,658

5,532

Receivables from related companies

LaR

985

0

985

0

0

0

985

Other receivables

LaR / n/a / HfT

68,201

57,062

10,782

2,767

357

0

11,139

thereof: derivates with a hedging relationship

n/a

2,767

2,767

0

2,767

0

0

0

thereof: derivates without a hedging relationship

HfT

357

0

0

0

357

0

357

Investments

LaR/FVO

1,162

0

107

0

1,055

0

1,162

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Trade payables

FLAC

270,577

0

270,577

0

0

0

270,577

Liabilities to related companies

FLAC

132

0

132

0

0

0

132

Financial liabilities

FLAC / n/a

210,083

0

205,970

0

0

4,113

210,460

thereof: liabilities from finance leases

n/a

4,113

0

0

0

0

4,113

4,490

Other non-interest-bearing liabilities

FLAC/n/a/HfT

192,357

114,777

77,561

7,046

19

0

77,580

thereof: derivates with a hedging relationship

n/a

7,046

7,046

0

7,046

0

0

0

thereof: derivates without a hedging relationship

HfT

19

0

0

0

19

0

19

 

 

 

 

 

 

 

 

 

Aggregated by category in accordance with IA S 39:

 

Loans and receivables

LaR

390,181

0

390,181

0

0

0

390,181

Financial assets and liabilities measured as at fair value through profit or loss (Fair Value Option)

FVO

1,055

0

0

0

1,055

0

1,055

Financial assets measured as at fair value through profit or loss (Held for Trading)

HfT

357

0

0

0

357

0

357

Financial liabilities measured as at fair value through profit or loss (Held for Trading)

HfT

19

0

0

0

19

0

19

Financial liabilities measured at amortized costs

FLAC

554,240

0

554,240

0

0

0

554,240

Due to the short-term maturities of cash and cash equivalents, trade receivables and payables, as well as other current receivables and payables, their fair values approximate their carrying amount. The fair values of non-current financial assets and liabilities are estimated by discounting expected future cash flows using current interest rates for debt of similar terms and remaining maturities. Cash and cash equivalents, receivables from related parties, other receivables and investments are not past due and not impaired.

The fair values of forward currency transactions have been obtained by the respective quotations of banks at the balance sheet date. The fair values of the collars and swaps at the balance sheet date were also arrived at based upon corresponding quotations obtained from banks using internal mark-to-market models.

The net gains and losses from financial instruments by IAS 39 category are shown in the following table:

Net Gain/Loss by Category.

€k

 

2008/2009

2007/2008

Loans and receivables

–5,347

5,070

Financial assets measured as at fair value through profit or loss (fair value option)

6

8

Financial assets and liabilities measured as at fair value through profit or loss (held for trading)

–1,294

87

Financial liabilities measured at amortized costs

–5,339

–17,897

 

–11,974

–12,732

In addition to interest income and expenses, net gains and losses by category comprise mainly impairment losses and reversals as well as foreign currency translation effects.

Risks Arising from Financial Instruments.

Typical risks arising from financial instruments include credit risk, liquidity risk and market risks. The risk management system of Wincor Nixdorf Group including its goals, methods and processes is presented in the Risk Report of the Group Management Report.

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