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The sensitivity analysis conducted demonstrates that an increase in the perpetuity growth rate of
1.0% would give rise to an increase in value of EUR 13 million, whereas a decrease in the
perpetuity growth rate of 1.0% would give rise to a decrease in value of EUR 11 million. Similarly,
a decrease of 1.0% in the discount rate would give rise to an increase of EUR 18 million. The
changes in value used in all the sensitivity analyses would not reduce the recoverable amount
below the carrying amount. With a perpetuity growth rate of zero and increases in the discount
rate of more than 1.0%, the recoverable amount would be below the carrying amount.
In calculating such valuation adjustments as might be required for trade and other receivables, the
Company takes into account the date on which the receivables are due to be settled and the equity
position of related debtors.
The Company derecognises a financial asset when the rights to the cash flows from the financial
asset expire or have been transferred and substantially all the risks and rewards of ownership of
the financial asset have also been transferred, such as in the case of firm asset sales.
However, the Company does not derecognise financial assets, and recognises a financial liability
for an amount equal to the consideration received, in transfers of financial assets in which
substantially all the risks and rewards of ownership are retained, such as in the case of bill
discounting.
4.5.2 Financial liabilities
Financial liabilities include accounts payable by the Company that have arisen from the purchase of
goods or services in the normal course of the Company's business and those which, not having
commercial substance, cannot be classed as derivative financial instruments.
Accounts payable are initially recognised at the fair value of the consideration received, adjusted
by the directly attributable transaction costs. These liabilities are subsequently measured at
amortised cost.
The Company derecognises financial liabilities when the obligations giving rise to them cease to
exist.
4.5.3 Equity instruments
An equity instrument is a contract that evidences a residual interest in the assets of the Company
after deducting all of its liabilities.
Equity instruments issued by the Company are recognised in equity at the proceeds received, net
of issue costs.
Treasury shares acquired by the Company during the year are recognised at the value of the
consideration paid and are deducted directly from equity. Gains and losses on the acquisition, sale,
issue or retirement of treasury shares are recognised directly in equity and in no case are they
recognised in profit or loss.
4.5.4 Hedges
The Company uses derivative financial instruments to hedge the risks to which its business
activities, operations and future cash flows are exposed. Basically, these risks relate to changes in
exchange rates. The Company arranges hedging financial instruments in this connection.
In order for these financial instruments to qualify for hedge accounting, they are initially
designated as such and the hedging relationship is documented. Also, the Company verifies, both
at inception and periodically over the term of the hedge (at least at the end of each reporting
period), that the hedging relationship is effective, i.e. that it is prospectively foreseeable that the
changes in the fair value or cash flows of the hedged item (attributable to the hedged risk) will be
almost fully offset by those of the hedging instrument and that, retrospectively, the gain or loss on
the hedge was within a range of 80-125% of the gain or loss on the hedged item.