Annual Report 2009/2010 Geschäftsbericht 2009/2010 ... - biolitec AG

86 Annual Financial Statement Konzern-Jahresabschluss
3.8. Financial Instruments
I. Definitions
Financial assets are divided into the following categories:
1. Financial assets at fair value through profit and loss
2. Loans and accounts receivable
3. Available-for-sale financial assets
The classification depends on the purpose the assets were acquired for.
The classification is determined at first balance approach.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity. Financial instruments that are recorded as financial assets
or financial liabilities are principally disclosed separately.
II. Financial assets at fair value through profit and loss
Financial assets at fair value through profit and loss are assets which were acquired for the purpose of
trade.
III. Loans and accounts receivable
Loans and accounts receivable include all non-derivative financial assets with determinable payments
which are not noted on an active market. They are noted as short-term financial assets if their maturity
is below 12 months otherwise as long-term assets. They are presented in the consolidated financial
statement as “Trade receivables and other accounts receivable” as well as “Cash and cash equivalents.”
IV. Available-for-sale financial assets
Available-for-sale financial assets are all non-derivative assets which directly fall into this category or
cannot be assigned to another category. They are noted as long-term financial assets if the management
does not plan on selling these assets within the next 12 months and they do not become due.
V. Recognition and measurement
The first-time inclusion of a financial asset not falling under the category “Financial assets at fair value
through profit and loss “ is done at the fair value in addition to the transaction costs. Financial assets in
the category of “Financial assets at fair value through profit and loss” are measured upon recognition at
fair value in addition to all related transaction costs. The first recognition of liabilities is done at fair value
of the equivalents or the value of the received instruments of payment excluding related transaction
costs.
The important financial assets and liabilities of the biolitec group fall in the category of ”Loans and accounts
receivable that are in the subsequent valuation measured as continued acquisition costs”. After
the first-time inclusion the financial assets and liabilities are evaluated as continued acquisition costs,
following the effective interest method. Liabilities from finance lease are presented at their cash value
of the minimum leasing rates. Profit and loss are recorded in the consolidated results, when the borrow-