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Valuation gains and losses from available-for-sale financial assets are recognized directly
in equity after deferred taxes have been taken into account and are cumulatively transferred
to the income statement only when these assets are sold or subject to impairment.
Changes in the fair value of all other financial instruments are recognized directly in the
income statement.
Derivative financial instruments
As financial assets and financial liabilities, derivative financial instruments are initially
recognized at fair value plus transaction costs, and subsequently measured at fair value.
Commodities futures to which the own use exemption according to IAS 39 does not apply
are reported as a trading portfolio separately from the own use portfolio and measured at
fair value in accordance with IAS 39.
The treatment of changes in fair value depends on the nature of the hedged item. On the
conclusion of a hedging contract, derivative financial instruments are classified either as
fair value hedges or as cash flow hedges.
In a fair value hedge, both the hedging instrument and the hedged item are measured
at fair value, and changes in these fair values are recognized directly in the income
statement.
In a cash flow hedge, the portion of the gain or loss on the hedging instrument that is
determined to be an effective hedge is recognized directly in equity, taking into account
deferred taxes. The cumulative adjustments in equity are transferred to the income statement
only when the corresponding gains or losses from the hedged item are recognized
as income or expenses.
When a net investment in foreign companies is hedged, the effective portion of the hedging
transaction less deferred taxes is recognized in equity until the company is sold.
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