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CONSOLIDATED FINANCIAL STATEMENTS AND CONSOLIDATED MANAGEMENT REPORT 2015
4.10. Financial assets
Financial assets are initially recognized at fair value, including, in case investments are not recognized at fair value with
changes in results, general transactions costs.
The Group determines the classification of its financial assets on initial recognition and re-evaluates this designation at
each financial year end.
The financial assets held by the Group companies are classified as:
• Held-to-maturity investments: non-derivative financial assets with fixed or determinable payments and fixed
maturity that the Group has the positive intention and ability to hold from the date of purchase to the date of
maturity. They do not include loans and accounts receivable originated by the company. After initial measure-
ment held-to-maturity investments are measured at amortized cost using the effective interest method.
• Loans and receivables: financial assets originated by the companies in exchange for supplying cash, goods or
services directly to a debtor. Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. After initial measurement such financial assets are carried at
amortized cost using the effective interest rate method. Loans and receivables in the consolidated statement of
financial position maturing in 12 months or less from the consolidated statement of financial position date are
classified as current and those maturing in over 12 months as non-current.
• Available-for-sale financial assets: are non-derivative financial assets that are designated as available-for-sale or
are not classified in any of the three preceding categories. Such financial assets are measured at fair value with
unrealized gains or losses recognized directly in equity unless fair value cannot be reliably measured, which shall
be measured at cost.
• Financial assets at fair value through profit and loss: financial assets classified as held for trading are included in
the category financial assets at fair value through profit and loss. Financial assets are classified as held for trading
when they are acquired for the purpose of selling in the near future. Derivatives are also classified as held for
trading unless they are effective hedging instruments and identified as such. Gains or losses on financial assets
held for trading are recognized in profit or loss.The Group has no held-for-trading financial assets.
The fair value of a financial instrument on a given date is taken to be the amount for which it could be bought or sold
on that date by two knowledgeable, willing parties in an arm’s length transaction acting prudently. The most objective
and common reference for the fair value of a financial instrument is the price that would be paid for it on an organized,
transparent and deep market (“quoted price” or “market price”). If this market price cannot be determined objectively
and reliably for a given financial instrument, its fair value is estimated on the basis of the price established in recent
transactions involving similar instruments or of the discounted present value of all the future cash flows (collections or
payments), applying a market interest rate for similar financial instruments (same term, currency, interest rate, and same
equivalent risk rating).
4.11. Impairment of non-current assets
4.11.1. Non-financial assets
The Group assesses periodically and at least at each reporting date whether there is any indication that an asset or
the cash-generating units may be impaired. If any such indication exists, or when annual impairment testing is required,
the Group estimates the asset’s or cash-generating unit’s recoverable amount. An asset’s or cash-generating unit’s
recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use.