english - About Heraeus

Determination of fair value
Cash and cash equivalents, other securities, other financial assets, other financial liabi lities,
as well as trade receivables and payables have predominantly short durations. The
carrying amounts correspond approximately to the fair values.
Securities in the available-for-sale category are traded mainly on the stock exchange.
The fair value is determined for the most part on the basis of stock exchange prices and
valuation methods of which the valuation parameters are based on market information
observed.
The fair values of the derivative financial instruments are determined on the basis of the
stock exchange price if they are traded on an active market. The fair values of those derivative
financial instruments not traded on an active market are calculated using appropriate
valuation methods based on market information observed on the balance sheet date. The
fair value of interest rate swaps is calculated on the basis of the cash value of the anticipated
future payment flows. The fair value of forward exchange transactions is calculated
by means of the par method on the balance sheet date. The market prices actually attainable
on the balance sheet date may differ from the values calculated using this method.
Generally accepted option price models are used for the valuation of options.
Loans, liabilities to banks, and promissory notes are valued at amortized cost.
The investments as part of the other financial investments were valued at acquisition cost
because the fair value cannot be reliably forecast due to the lack of a market and to the
uncertainty of payment flows.
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