Information on financial instruments
The carrying amounts and fair values of financial assets and liabilities in accordance with IFRS 7 are shown in > TABLE 37.
Carrying amounts and fair values broken down by class |
37 |
|||||||
|
30/06/2018 |
01/01/2018 |
||||||
in € million |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
||||
|
||||||||
Financial assets |
|
|
|
|
||||
Financial investments |
8.1 |
8.1 |
11.8 |
11.8 |
||||
Financial receivables |
36.3 |
36.3 |
32.5 |
32.5 |
||||
Other financial assets |
21.6 |
21.6 |
21.3 |
21.3 |
||||
Lease receivables1 |
921.2 |
925.3 |
875.8 |
878.2 |
||||
Contract assets2 |
134.5 |
134.5 |
100.3 |
100.3 |
||||
Trade receivables |
1,061.7 |
1,061.7 |
1,014.1 |
1,014.1 |
||||
Other financial receivables |
61.8 |
61.8 |
88.0 |
88.0 |
||||
thereof non-derivative receivables |
40.4 |
40.4 |
58.0 |
58.0 |
||||
thereof derivative financial instruments |
21.3 |
21.3 |
30.0 |
30.0 |
||||
Cash and cash equivalents |
180.4 |
180.4 |
173.2 |
173.2 |
||||
|
|
|
|
|
||||
Financial liabilities |
|
|
|
|
||||
Liabilities to banks |
1,249.7 |
1,253.8 |
1,253.7 |
1,259.6 |
||||
Promissory note |
1,212.9 |
1,221.2 |
1,007.3 |
1,021.0 |
||||
Other financial liabilities to non-banks |
5.4 |
5.4 |
7.7 |
7.7 |
||||
Liabilities from financial services |
942.6 |
944.8 |
437.4 |
439.7 |
||||
Lease liabilities1 |
910.1 |
912.9 |
1,131.1 |
1,138.1 |
||||
Trade payables |
1,063.3 |
1,063.3 |
923.9 |
923.9 |
||||
Other financial liabilities |
813.1 |
819.1 |
962.2 |
963.8 |
||||
thereof liabilities from procurement leases1 |
393.3 |
398.4 |
369.1 |
367.7 |
||||
thereof liabilities from short-term rental fleet financing1 |
358.3 |
359.3 |
515.7 |
518.8 |
||||
thereof non-derivative liabilities |
48.9 |
48.9 |
72.1 |
72.1 |
||||
thereof derivative financial instruments |
12.5 |
12.5 |
5.2 |
5.2 |
||||
As at 30 June 2018, financial investments essentially comprised the equity investment in Balyo SA. They are recognised at fair value.
Starting in 2018, liabilities from financial services are shown as a separate line item in the statement of financial position and fall within the scope of IFRS 9. They are measured at amortised cost using the effective interest method (FLaC category).
Fair value measurement and assignment to classification levels
The following tables show the assignment of fair values to the individual classification levels as defined by IFRS 13 for financial instruments measured at fair value. > TABLES 38 – 39
Financial instruments measured at fair value |
38 |
||
|
Fair Value Hierarchy |
||
in € million |
Level 1 |
Level 2 |
30/06/2018 |
Financial assets |
|
|
67.5 |
thereof financial investments |
8.1 |
|
8.1 |
thereof other financial investments |
|
21.6 |
21.6 |
thereof trade receivables |
|
16.5 |
16.5 |
thereof derivative financial instruments |
|
21.3 |
21.3 |
|
|
|
|
Financial liabilities |
|
|
12.5 |
thereof derivative financial instruments |
|
12.5 |
12.5 |
Financial instruments measured at fair value |
39 |
||
|
Fair Value Hierarchy |
||
in € million |
Level 1 |
Level 2 |
01/01/2018 |
Financial assets |
|
|
81.6 |
thereof financial investments |
11.8 |
|
11.8 |
thereof other financial investments |
|
21.3 |
21.3 |
thereof trade receivables |
|
18.6 |
18.6 |
thereof derivative financial instruments |
|
30.0 |
30.0 |
|
|
|
|
Financial liabilities |
|
|
5.2 |
thereof derivative financial instruments |
|
5.2 |
5.2 |
Level 1 essentially comprises the equity investment in Balyo SA, for which the fair value is calculated using prices quoted in an active market.
The fair value of other financial investments is determined using prices quoted in an active market and other observable inputs. They are assigned to Level 2.
Trade receivables that are recognised at fair value through profit or loss are assigned to Level 2. Their fair value is calculated using the transaction price achievable in an active market. The biggest influence on the transaction price is the default risk of the counterparty.
Interest-rate swaps and currency forwards are also classified as Level 2. The fair value of derivative financial instruments is determined by the system using appropriate valuation methods on the basis of the observable market information at the reporting date. The default risk for the Group and for the counterparty is taken into account on the basis of gross figures. The fair value of interest-rate swaps is calculated as the present value of the future cash flows. Both contractually agreed payments and forward interest rates are used to calculate the cash flows, which are then discounted on the basis of a yield curve that is observable in the market. The fair value of the currency forwards is calculated by the system using the discounting method based on forward rates on the reporting date.
In order to eliminate default risk to the greatest possible extent, the KION Group only ever enters into derivatives with investment-grade counterparties.
If events or changes in circumstances make it necessary to reclassify financial instruments to a different level, this is done at the end of a reporting period. No financial instruments were transferred between Levels 1 and 2 in the first six months of 2018.