31. Financial instruments and risk management

Carrying amounts, valuations and fair values according to measurement category

      Balance sheet amount in line with IAS 39   Balance sheet amount in line with IAS 39
in € thousand Measurement category pursuant to IAS 39 Carrying amount 31 Dec 2010 Amortised cost Costs Fair value recognised in equity Fair value
recognised
in income
Fair value
31 Dec 2010
Carrying amount
31 Dec 2009
Amortised cost Costs Fair value
recognised
in equity
Fair value
recognised
in income
Fair value
31 Dec 2009
* Corresponds to level 2 of the IFRS 7 fair value hierarchy          
Financial assets*              
Non-current financial assets AfS 23,885 0 15,381 8,505   23,886 24,756   15,381 9,375   24,756
Trade receivables LaR 3,481 3,481       3,481 2,557 2,557       2,557
Other assets LAR 3,628 701   792   3,628 1,807 853   954   1,807
Other financial investments HtM 0         0 1,600 1,600       1,600
Cash and cash equivalents LaR 65,784 65,784       65,784 81,914 81,914       81,914
                           
Financial liabilities*                
Bank loans and overdrafts FLAC 1,288,156 1,288,156       1,324,096 934,195 934,195       968,000
Right to redeem of limited partners FLAC 277,780 277,780       277,780 123,035 123,035       123,035
Trade payables FLAC 6,145 6,145       6,145 1,071 1,071       1,071
Other liabilities FLAC 27,641 6,473   21,168   27,641 22,893 3,392   19,501   22,893
                           
Aggregated according to measurement category pursuant to IAS 39:              
Loans and receivables (LaR)   72,893 69,966   792   72,893 86,278 85,324   954   86,278
Available for sale (AfS)   23,885   15,381 8,505   23,886 24,756   15,381 9,375   24,756
Held to maturity (HtM)   0         0 1,600 1,600       1,600
Financial liabilities measured at amortised cost (FLAC)   1,599,722 1,578,554   21,168   1,635,662 1,081,194 1,061,693   19,501   1,114,999
      Balance sheet amount in line with IAS 39   Balance sheet amount in line with IAS 39
in € thousand Measurement category pursuant to IAS 39 Carrying amount 31 Dec 2010 Amortised cost Costs Fair value recognised in equity Fair value
recognised
in income
Fair value
31 Dec 2010
Carrying amount
31 Dec 2009
Amortised cost Costs Fair value
recognised
in equity
Fair value
recognised
in income
Fair value
31 Dec 2009
* Corresponds to level 2 of the IFRS 7 fair value hierarchy          
Financial assets*              
Non-current financial assets AfS 23,885 0 15,381 8,505   23,886 24,756   15,381 9,375   24,756
Trade receivables LaR 3,481 3,481       3,481 2,557 2,557       2,557
Other assets LAR 3,628 701   792   3,628 1,807 853   954   1,807
Other financial investments HtM 0         0 1,600 1,600       1,600
Cash and cash equivalents LaR 65,784 65,784       65,784 81,914 81,914       81,914
                           
Financial liabilities*                
Bank loans and overdrafts FLAC 1,288,156 1,288,156       1,324,096 934,195 934,195       968,000
Right to redeem of limited partners FLAC 277,780 277,780       277,780 123,035 123,035       123,035
Trade payables FLAC 6,145 6,145       6,145 1,071 1,071       1,071
Other liabilities FLAC 27,641 6,473   21,168   27,641 22,893 3,392   19,501   22,893
                           
Aggregated according to measurement category pursuant to IAS 39:              
Loans and receivables (LaR)   72,893 69,966   792   72,893 86,278 85,324   954   86,278
Available for sale (AfS)   23,885   15,381 8,505   23,886 24,756   15,381 9,375   24,756
Held to maturity (HtM)   0         0 1,600 1,600       1,600
Financial liabilities measured at amortised cost (FLAC)   1,599,722 1,578,554   21,168   1,635,662 1,081,194 1,061,693   19,501   1,114,999

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Non-current financial assets include an investment defined as available for sale, which was reported in equity on the balance sheet date.

Investments measured using the equity method are reported at fair value. Any write-downs in the year under review are recognised in net profit or loss for the period.

Trade receivables, other assets and cash and cash equivalents have predominantly short- term residual terms. The carrying amounts thus correspond to the fair value. The change in the present value of the long-term interest rate swap recognised was €161 thousand (previous year: €106 thousand).

Other assets and other financial investments include non-current amounts which have been recognised at present value, taking into account the interest and market price parameters applicable on the reporting date.

Bank loans and overdrafts have long-term durations are are recognised at amortised cost. The fair value for Group loans is given in the notes under item 12 “Bank loans and overdrafts”. In total, interest expense of €54,075 thousand (previous year: €49,680 thousand) is included in net finance costs.

Trade payables and other liabilities, with the exception of interest rate swaps – which are recognised at present value – usually have short residual terms. The carrying amounts thus correspond to the fair value.

Other liabilities include non-current amounts which have been recognised at present value, taking into account the interest and market price parameters applicable on the reporting date.

Interest from financial instruments is reported in net finance costs. The profit/loss share of third-party shareholders of €7,948 thousand (previous year: €8,164 thousand) is also included in net finance costs.

Impairment charges on receivables are reported in property operating costs.

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