Annual Report 2005/06 THE WORLD OF SOUND - Sonova
Annual Report 2005/06 THE WORLD OF SOUND - Sonova Annual Report 2005/06 THE WORLD OF SOUND - Sonova
7. Financial instrumentsOptions/Forward foreign exchange contracts1,000 CHFUnderlying principal amount31.3.2006163,13331.3.2005177,459Positive replacement valueNegative replacement valueTotal707(1,649)(942)990(1,421)(431)Positive replacement values are recorded as financial assets at fair value through profit or loss (Note 14) whereas negative replacementvalues are recorded as financial liabilities at fair value through profit or loss.The Group hedges its net foreign currency exposure based on future expected cash inflows and outflows. The hedges have a durationbetween 1 and 12 months. No hedge accounting has been applied to these hedges, since they do not qualify for such treatment underIAS 39.8. Other (expenses)/income, net1,000 CHFOther operating expensesOther operating incomeExchange differencesTotal2005/06(243)927(2,908)(2,224)2004/05(1,842)1,6531,9871,798Consolidated Financial Statements61
9. Financial income/(expenses), net1,000 CHFGain on financial assets at fair value through profit or lossInterest incomeOther financial incomeTotal financial incomeMortgage interestOther interest expensesOther financial expensesChange in fair value of financial assets available for saleTotal financial expensesTotal financial income/(expenses), net2005/061,1664,368195,553(409)(604)(272)(1,285)4,2682004/054301,1901,9483,568(1,214)(1,968)(2)(1,209)(4,393)(825)Mortgage interest is mainly related to the mortgages on Phonak’s building in Stäfa, Switzerland. The interest rate on mortgages was between2.8% and 5.3% in 2005/06 (see Note 25). Other interest expenses are mainly related to bank loans (see Notes 23 and 26).The change in fair value of financial assets available for sale in the financial year 2004/05 is related to an adjustment of the fair value ofthree investments in third party companies (less than 20% of voting rights). These adjustments have been determined based on an analysis ofthe financial statements of the corresponding unquoted companies.In the financial year 2005/06, these investments have been designated as financial assets at fair value through profit or loss (in accordancewith revised IAS 39).10. Taxes1,000 CHFIncome taxesChange in deferred taxesTotal tax expenseReconciliation of tax expenseIncome before taxesWeighted average expected tax rateTax at weighted average rate+/- effects ofnon tax deductible expenses (income)utilization of previously unrecognized loss carryforwardschange in tax rates on deferred tax balancesprior-year expense and other itemsTotal tax expenseas a % of income before taxes2005/0643,06127043,331215,79620.0%43,2491,310228(920)(536)43,33120.1%2004/05 1)31,529(2,261)29,268125,12425.0%31,331(1,174)(1,345)(1,059)1,51529,26823.4%1)Including adjustments in accordance with new IFRS accounting standards (see Notes)62 Consolidated Financial Statements
- Page 15 and 16: NEW TECHNOLOGIES AND PRODUCTSPlatfo
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- Page 24 and 25: Capital StructureChanges in capital
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- Page 36 and 37: Investor Relations CalendarJuly 6,
- Page 39 and 40: SUSTAINABILITYPhonak’s management
- Page 41 and 42: Our customers buy a better quality
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- Page 55 and 56: equity method, the investment in an
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- Page 69 and 70: 17. Inventories1,000 CHFRaw materia
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- Page 77 and 78: 27. Other long-term liabilities1,00
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7. Financial instrumentsOptions/Forward foreign exchange contracts1,000 CHFUnderlying principal amount31.3.20<strong>06</strong>163,13331.3.<strong>2005</strong>177,459Positive replacement valueNegative replacement valueTotal707(1,649)(942)990(1,421)(431)Positive replacement values are recorded as financial assets at fair value through profit or loss (Note 14) whereas negative replacementvalues are recorded as financial liabilities at fair value through profit or loss.The Group hedges its net foreign currency exposure based on future expected cash inflows and outflows. The hedges have a durationbetween 1 and 12 months. No hedge accounting has been applied to these hedges, since they do not qualify for such treatment underIAS 39.8. Other (expenses)/income, net1,000 CHFOther operating expensesOther operating incomeExchange differencesTotal<strong>2005</strong>/<strong>06</strong>(243)927(2,908)(2,224)2004/05(1,842)1,6531,9871,798Consolidated Financial Statements61
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