COMENTARIOS FINALES

Cash and cash equivalents comprise monetary investments with a remaining maturity of up to three months at the time of acquisition as well as bills of exchange with an original maturity of up to three months.

if the Company has any financial assets subject to restrictions on disposal, they are recognized under other assets. they are included in the consolidated statement of cash flows as cash flows from financing activities if they are related to the Company’s financing transactions.

4.10 Receivables

trade invoices are issued mainly in euros and reported at the fair value of the services rendered.

if there is an objective indication that receivables carried at amortized cost are impaired, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding expected future credit losses that have not yet been incurred) discounted at the financial asset’s original effective interest rate (i.e., the effective interest rate determined on initial recognition). the carrying amount of the asset is reduced through use of an allowance account. the impairment loss is recognized directly in profit or loss. the Company recognizes specific bad debt allowances for trade receivables when customers default. this only applies where there is no collateral (e.g., credit insurance policies, etc.).

for trade receivables, if there are objective indications that not all due amounts will be collected pursuant to the original payment terms (such as probability of insolvency or significant financial difficulties of the debtor), an impairment loss is charged. receivables are derecognized when they are classified as uncollectible. if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed, with the amount of the reversal recognized in profit or loss. however, the reversal must not result in the carrying amount of the asset exceeding what the amortized cost would have been at the date the impairment is reversed if the impairment had not been recognized.

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loans and receivables are recognized at amortized cost, which is determined using the effective interest method less any impairment and including discounts and premiums paid upon acquisition as well as transaction costs and fees which are an integral part of the effective interest rate.

Borrowings are initially recognized at fair value net of transaction costs directly associated with the borrowing. they are not designated as measured at fair value through profit or loss. after initial recognition, interest-bearing borrowings are measured at amortized cost using the effective interest method. gains and losses are recognized in profit or loss when the liabilities are derecognized, as well as through the amortization process.

financial liabilities are classified as held for trading if they are reacquired for the purpose of selling in the near term. derivatives are also classified as held for trading unless they are designated as effective hedging instruments. gains or losses on financial liabilities held for trading are recognized in profit or loss.

Derecognition

a financial asset (or, where applicable, part of a financial asset or part of a group of similar financial assets) is derecognized when one of the following conditions is met:

→ the rights to receive cash flows from the asset have expired.

→ the group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without delay to a third party under an agreement that meets the conditions in ias 39.19 (“pass-through” arrangement); and either (a) the group has transferred substantially all the risks and rewards of the asset, or (b) the group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

all regular way purchases and sales of financial assets are recognized on the trade date, i.e., the date that the group commits to purchase or sell the asset. regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established generally by regulation or convention in the marketplace concerned.

loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. after initial recognition, loans and receivables are measured at amortized cost using the effective interest method less any impairment. gains and losses are recognized in profit or loss when the loans and receivables are derecognized or impaired, as well as through the amortization process.

the group of financial assets measured at fair value through profit or loss includes financial assets held for trading and financial assets which are designated upon initial recognition as at fair value. the group has not classified any financial assets as at fair value through profit or loss.

financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term. derivatives, including separated embedded derivatives, are also classified as held for trading unless they are financial guarantee contracts or are designated and effective hedging instruments. gains or losses from financial assets held for trading are recognized in profit or loss. for investments that are actively traded in organized financial markets, fair value is determined by the quoted market prices (bid prices) as at the reporting date. the fair value of investments that are not quoted on an active market is determined using valuation techniques. such techniques may include using recent arm’s length transactions between knowledgeable, willing independent parties, reference to the current fair value of another financial instrument which is substantially the same and discounted cash flow analysis or other valuation models.

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the Company primarily concludes forward exchange contracts to hedge foreign currency risks from trade receivables. in the case of fair value hedges for existing receivables, the hedging transaction and the risk portion of the hedged item are carried at fair value. Changes in value are recognized in profit or loss.

in the case of cash flow hedges, the hedging instruments are likewise carried at fair value. forward exchange contracts are measured using the eCB reference rates for spot currency and the valid forward exchange rates of the respective commercial bank for forward currency. Changes in value, provided that the hedges are deemed to be effective, are initially disclosed in other comprehensive income, taking into account any deferred taxes, and only recognized in profit or loss when the cash flow is realized. the ineffective portion is reported immediately in profit or loss.