Print this page

[61] Other disclosures on financial instruments 

The following table presents the reconciliation of the balance sheet items to the classes of financial instruments in accordance with IFRS 7:

XLS

 

 

 

 

 

 

 

 

 

 

Subsequent measurement according to IAS 39

 

 

€ million

Book value Dec. 31, 2012

Amortized cost

At cost

Fair value

Carrying
value accord-
ing to IAS 17

Non-financial items

Fair value
Dec. 31, 2012

The fair values of derivatives stated here do not include accrued interest (clean price).

1

Previous year’s figures have been adjusted, see Note [5]

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

729.7

729.7

–

–

–

–

729.7

Current financial assets

1,797.9

549.7

–

1,248.2

–

–

 

Held for trading (non-derivatives)

–

–

–

–

–

–

–

Non-hedging derivatives

7.8

–

–

7.8

–

–

7.8

Held to maturity

349.7

349.7

–

–

–

–

349.7

Loans and receivables

200.0

200.0

–

–

–

–

200.3

Available-for-sale

1,230.1

–

–

1,230.1

–

–

1,230.1

Hedging derivatives

10.3

–

–

10.3

–

–

10.3

Trade receivables

2,114.6

2,114.6

–

–

–

–

 

Loans and receivables

2,114.6

2,114.6

–

–

–

–

2,114.6

Current and non-current other assets

346.9

88.8

–

55.3

–

202.8

 

Non-hedging derivatives

2.7

–

–

2.7

–

–

2.7

Loans and receivables

88.8

88.8

–

–

–

–

88.8

Hedging derivatives

52.6

–

–

52.6

–

–

52.6

Non-financial items

202.8

–

–

–

–

202.8

 

Non-current financial assets

97.1

48.0

41.8

7.3

–

–

 

Non-hedging derivatives

–

–

–

–

–

–

–

Held to maturity

30.0

30.0

–

–

–

–

30.0

Loans and receivables

18.0

18.0

–

–

–

–

18.0

Available-for-sale

48.7

–

41.8

6.9

–

–

48.7

Hedging derivatives

0.4

–

–

0.4

–

–

0.4

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Current and non-current financial liabilities

4,453.5

4,284.2

–

159.5

9.8

–

 

Non-hedging derivatives

4.7

–

–

4.7

–

–

4.7

Other liabilities

4,284.2

4,284.2

–

–

–

–

4,715.7

Hedging derivatives

154.8

–

–

154.8

–

–

154.8

Finance lease

9.8

–

–

–

9.8

–

9.8

Trade accounts payable

1,288.3

1,288.3

–

–

–

–

 

Other liabilities

1,288.3

1,288.3

–

–

–

–

1,288.3

Current and non-current other liabilities

1,105.6

522.9

–

15.0

–

567.7

 

Non-hedging derivatives

0.4

–

–

0.4

–

–

0.4

Other liabilities

522.9

522.9

–

–

–

–

522.9

Hedging derivatives

14.6

–

–

14.6

–

–

14.6

Non-financial items

567.7

–

–

–

–

567.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsequent measurement according to IAS 39

 

 

€ million

Book value Dec. 31, 2011

Amortized cost

At cost

Fair value

Carrying
value accord-
ing to IAS 17

Non-financial items

Fair value
Dec. 31, 2011

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

937.8

937.8

–

–

–

–

937.8

Current financial assets

1,117.1

787.3

–

329.8

–

–

 

Held for trading (non-derivatives)

–

–

–

–

–

–

–

Non-hedging derivatives

6.4

–

–

6.4

–

–

6.4

Held to maturity

27.3

27.3

–

–

–

–

27.3

Loans and receivables

760.0

760.0

–

–

–

–

760.0

Available-for-sale

307.9

–

–

307.9

–

–

307.9

Hedging derivatives

15.5

–

–

15.5

–

–

15.5

Trade receivables

2,328.3

2,328.3

–

–

–

–

 

Loans and receivables

2,328.3

2,328.3

–

–

–

–

2,328.3

Current and non-current other assets

306.91

90.6

–

2.6

–

213.71

 

Non-hedging derivatives

0.6

–

–

0.6

–

–

0.6

Loans and receivables

90.6

90.6

–

–

–

–

90.6

Hedging derivatives

2.0

–

–

2.0

–

–

2.0

Non-financial items

213.71

–

–

–

–

213.71

 

Non-current financial assets

60.3

18.6

32.6

9.1

–

–

 

Non-hedging derivatives

–

–

–

–

–

–

–

Held to maturity

–

–

–

–

–

–

–

Loans and receivables

18.6

18.6

–

–

–

–

18.6

Available-for-sale

41.3

–

32.6

8.7

–

–

41.3

Hedging derivatives

0.4

–

–

0.4

–

–

0.4

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Current and non-current financial liabilities

5,539.3

5,308.0

–

219.5

11.8

–

 

Non-hedging derivatives

27.8

–

–

27.8

–

–

27.8

Other liabilities

5,308.0

5,308.0

–

–

–

–

5,548.1

Hedging derivatives

191.7

–

–

191.7

–

–

191.7

Finance lease

11.8

–

–

–

11.8

–

11.8

Trade accounts payable

1,100.8

1,100.8

–

–

–

–

 

Other liabilities

1,100.8

1,100.8

–

–

–

–

1,100.8

Current and non-current other liabilities

1,145.7

532.9

–

101.1

–

511.7

 

Non-hedging derivatives

3.6

–

–

3.6

–

–

3.6

Other liabilities

532.9

532.9

–

–

–

–

532.9

Hedging derivatives

97.5

–

–

97.5

–

–

97.5

Non-financial items

511.7

–

–

–

–

511.7

 

The net result of financial instruments mainly includes measurement results from currency translation, fair value adjustments, write-downs and write-ups as well as the recognition of premiums and discounts. Dividends and interest are not recognized in the net result of financial instruments, except for in the category “held for trading.” At Merck, the category “held for trading” only includes derivatives that are not hedged.

The net results of financial instruments by category were as follows:

XLS

 

 

 

 

 

 

 

 

Net results

2012 € million

Interest

Write-downs

Write-ups

Fair value adjustments

Disposal gains / losses

Financial instrument of the category

 

 

 

 

 

Held for trading

–

–

–

44.4

–

Held to maturity

10.5

–

–

–

–

Loans and receivables

7.9

–69.9

42.4

–

–

Available-for-sale

11.4

–5.1

20.8

–

0.3

Other liabilities

–195.3

–

–

–

–

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net results

2011 € million

Interest

Write-downs

Write-ups

Fair value adjustments

Disposal gains / losses

Financial instrument of the category

 

 

 

 

 

Held for trading

–

–

–

–57.5

–

Held to maturity

4.7

–

–

–

–0.8

Loans and receivables

37.5

–123.7

9.2

–

–

Available-for-sale

9.5

–38.3

0.9

–

26.9

Other liabilities

–209.2

–

–

–

–

In 2012, foreign exchange losses of € 60.4 million resulting from receivables and payables in operating business, their economic hedging, as well as hedging of planned transactions in operating business were recorded (2011: gains of € 12.3 million). Foreign exchange gains of € 11.2 million resulting from financial balance sheet items, their economic hedging as well as fair value fluctuations of option contracts to hedge planned transactions were recorded (2011: losses of € 30.4 million).

The fair value of financial assets is based on the official market prices and market values quoted on the balance sheet date (Level 1 assets) as well as mathematical calculation models with inputs observable in the market on the balance sheet date. Level 1 assets comprise stocks and bonds and are classified as “available-for-sale”. Level 2 assets are primarily interest-bearing securities classified as “available-for-sale” as well as hedging and non-hedging derivatives. The fair value of interest-bearing securities is determined by discounting future cash flows using market interest rates. The fair value measurement of forward exchange contracts and currency options uses spot and forward rates as well as foreign exchange volatilities applying recognized mathematical principles. The fair value of interest rate swaps is determined with standard market valuation models using interest rate curves available in the market.

The fair values of the financial instruments disclosed in our balance sheet were determined as follows:

XLS

 

 

 

€ million as of Dec. 31, 2012

Assets

Liabilities

Fair value determined by official prices and quoted market values (Level 1)

818.3

–

thereof available-for-sale

818.3

–

Fair value determined using inputs observable in the market (Level 2)

492.5

–174.5

thereof available-for-sale

418.7

–

thereof hedging derivatives

63.3

–169.4

thereof non-hedging derivatives

10.5

–5.1

Fair value determined using inputs unobservable in the market (Level 3)

–

–

 

 

 

 

 

 

€ million as of Dec. 31, 2011

Assets

Liabilities

Fair value determined by official prices and quoted market values (Level 1)

58.4

–

thereof available-for-sale

58.4

–

Fair value determined using inputs observable in the market (Level 2)

283.1

–320.6

thereof available-for-sale

258.2

–

thereof hedging derivatives

17.9

–289.2

thereof non-hedging derivatives

7.0

–31.4

Fair value determined using inputs unobservable in the market (Level 3)

–

–

© Merck KGaA, Darmstadt, Germany, Last Update 2013/03/07