back 
Financial instruments are divided into non-derivative and derivative financial instruments.
Non-derivative financial assets essentially include other non-current financial assets, accounts receivable, marketable securities and cash and cash equivalents. Financial assets available for sale are measured at fair value, while other financial assets are measured at amortized cost. On the liabilities side, non-derivative financial instruments principally include liabilities recorded at amortized cost. The balance of non-derivative financial instruments is disclosed in the balance sheet. The maximum default risk corresponds to the amount of financial assets. If default risks associated with financial assets are identified, they are recognized through impairment.
Fair values are derived from the relevant stock market quotations or are measured using generally accepted valuation methods. Prices on active markets (e.g. exchange prices) are drawn upon for the measurement of commodity Glossary derivatives. If no prices are available, for example because the market is not sufficiently liquid, the fair values are determined on the basis of generally accepted valuation methods. In doing so, prices on active markets are drawn upon as input parameters as much as possible. If such are not available, company-specific planning estimates are used in the measurement process. These estimates contain all of the market factors which other market participants would take into account in the course of price determination.
Forwards, futures, options and swaps involving commodities are recognized at their respective fair value as of the balance-sheet date, insofar as they fall under the scope of IAS 39. Exchange-traded products are measured using the published closing prices of the relevant exchange. Non-exchange traded products are measured using the broker quotations available to market participants or, if such quotations are not available, using generally accepted valuation methods. The fair value of certain long-term procurement or sales contracts is determined using recognized valuation models, on the basis of internal data if no market data are available.
Forward share purchases and sales are measured on the basis of the spot prices of the underlying shares; in order to do so, the spot prices are adjusted for the relevant time component.
Future payment flows from financial instruments used to hedge interest risks are discounted using the current market interest rates corresponding to the remaining maturity, in order to determine their fair value as of the balance-sheet date.
