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FINANCIAL STATEMENTS AND MANAGEMENT REPORT 2015
After initial recognition, these assets are stated at fair value including any transaction costs relating to their sale. Changes
to fair value are recognized in the income statement for the year.
a.5) Investments in Group companies, joint ventures, and associates
This category includes equity investments in companies in which the entity exercises control (group companies), joint
control via by-law resolutions or contractual arrangements with one or more partners (jointly controlled entities) or
has significant influence (associates).
Upon initial recognition in the balance sheet, the investments are recognized at fair value, which, unless there is evidence
to the contrary, is the transaction price, which is equivalent to the fair value of the consideration paid.
Investments in Group companies are recognized, where applicable, based on accounting principles for transactions with
group companies and those used for determining the cost of business combinations in accordance with the accounting
policy governing business combinations.
When an investment is newly classified as a group company, joint venture or associate, the carrying amount of that
investment immediately prior to its new classification is taken as the cost of that investment. If applicable, any unrealized
value adjustments to the investment which have been previously recognized directly in equity are left in equity until the
investment is either sold or impaired.
Following initial measurement, these financial assets are measured at cost, less any accumulated impairment loss.
When a value must be assigned to these assets because they are derecognized or for another reason, the homogenous-
groups weighted average cost method is applied, with homogenous groups understood to be those that have the same
rights.Where preferential subscription or similar rights are sold or separated for the purpose of being exercised, the cost
of these rights decreases the carrying amount of the respective assets.
a.6) Available-for-sale financial assets
This category includes debt securities and equity instruments of other companies not classified in any of the preceding
categories.
After initial recognition, these assets are stated at fair value including any transaction costs relating to their sale. Changes
in fair value are recognized directly in equity until the investment is derecognized or determined to be impaired, at
which time the cumulative gain or loss is recognized in the income statement. However, impairment losses and foreign
exchange gains, and losses on monetary assets denominated in foreign currency are recognized in the income statement.
Interest, calculated according to the effective interest rate method and dividend income are also recognized in the
income statement.
Investments in equity instruments whose fair value cannot be reliably determined are measured at cost, less any
cumulative impairment.When a value must be assigned to these assets because they are derecognized or for another
other reason, the homogenous-groups weighted average cost method is applied, with homogenous groups understood
to be those that have the same rights. Where preferential subscription or similar rights are sold or separated for the
purpose of exercising being exercised, the cost of these rights decreases the carrying amount of the respective assets.
This amount is the fair value or the cost of the rights consistent with the measurement of the associated financial assets.
B) Interest and dividends received from financial assets
Interest and dividends from financial assets accrued subsequent to acquisition are recognized as income. Interest must
be recognized using the effective interest rate method; dividends are recognized when the right to receive them is
established.