english - About Heraeus
english - About Heraeus
english - About Heraeus
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Price risks within the meaning of IFRS 7 are exclusively incurred through risks from<br />
financial instruments, which have an influence on payment flows or market valuations.<br />
As a result of the fact that the majority of the transactions that <strong>Heraeus</strong> performs within<br />
precious metal trading do not fall under the scope of IAS 39, because of physical delivery<br />
or crediting to pool accounts, “own use exemption,” the transactions are not a component<br />
of the risk reporting required by IFRS 7.<br />
The resulting price risks from equities are secured by means of derivatives (futures).<br />
Default risk<br />
The default risk arising from financial assets consists of the risk of default by a contracting<br />
party and is therefore limited maximally to the positive fair values in relation to the particular<br />
contracting parties (see table under “Further disclosures on financial instruments”).<br />
In the case of derivative financial instruments, the risk relates to their replacement costs<br />
(market values), which can be found in the table showing the values of derivative financial<br />
instruments. Counterparty-specific default risks are continuously monitored based on<br />
credit spreads, with the counterparties being collected into various groups based on their<br />
creditworthiness.<br />
The creation of specific or flat-rate-specific allowances for debt defaults takes into account<br />
risk arising from non-derivative financial instruments. Financial transactions are only<br />
entered into with partners of unquestioned standing. Investments in interest-bearing securities<br />
are only made in those having investment-grade standing.<br />
Liquidity risk<br />
Liquidity risks result mainly from short-term maturities of trade liabilities, liabilities from<br />
derivative financial instruments, as well as other financial liabilities.<br />
Adequate liquidity is guaranteed due to the <strong>Heraeus</strong> Group’s good credit standing, which<br />
has been confirmed by two independent rating agencies (see also (14) Shareholders’<br />
equity – Capital management information). This means that access to the short-term commercial<br />
paper market, as well as the long-term capital market, is ensured at any time. In<br />
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