10 Financial instruments and fair value disclosures
Cash and cash equivalents as per cash flow statement comprise cash and cash equivalents as per balance sheet and bank overdrafts under bank pooling arrangements (December 31, 2015: CHF 0.0 million; June 30, 2016: CHF 0.0 million) that are included in the position ‘Current bank liabilities and derivatives’.
10.1 Carrying amounts and fair values
| Carrying amount | Fair value | ||||||||
CHF 1,000 | Cash and cash equivalents | Current derivatives | Trade and other receivables | Non-current financial assets | Total assets | Current bank liabilities and derivatives | Trade and other payables/accrued expenses | Non-current loans and derivatives | Total liabilities |
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Financial instruments measured at fair value |
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Currency forwards | – | 1,269 | – | 100 | 1,369 | (4,824) | – | (1,057) | (5,881) |
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Financial instruments measured at amortized costs1 |
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Cash and cash equivalents | 208,434 | – | – | – | 208,434 | – | – | – | – |
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Receivables | – | – | 87,997 | – | 87,997 | – | – | – | – |
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Rent and other deposits | – | – | 322 | 655 | 977 | – | – | – | – |
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Current bank liabilities | – | – | – | – | – | (2,578) | – | – | (2,578) |
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Bank loans | – | – | – | – | – | (2,597) | – | (2,545) | (5,142) | (5,108) |
Other loans | – | – | – | – | – | – | – | (1,919) | (1,919) | (1,996) |
Payables and accrued expenses | – | – | – | – | – | – | (51,062) | – | (51,062) |
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Total financial instruments | 208,434 | 1,269 | 88,319 | 755 | 298,777 | (9,999) | (51,062) | (5,521) | (66,582) |
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Reconciling items2 | – | – | 10,858 | – | 10,858 | – | (13,676) | – | (13,676) |
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Balance at December 31, 2015 | 208,434 | 1,269 | 99,177 | 755 | 309,635 | (9,999) | (64,738) | (5,521) | (80,258) |
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- The carrying amount of financial instruments measured at amortized costs is a reasonable approximation of their fair value due to their short-term nature. Bank and other loans are the only exception due to their long-term nature.
- Receivables/payables arising from POC, VAT/other non-income taxes and social security
| Carrying amount | Fair value | ||||||||
CHF 1,000 | Cash and cash equivalents | Current derivatives | Trade and other receivables | Non-current financial assets | Total assets | Current bank liabilities and derivatives | Trade and other payables/accrued expenses | Non-current loans and derivatives | Total liabilities |
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Financial instruments measured at fair value |
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Currency forwards | – | 326 | – | 182 | 508 | (2,517) | – | (137) | (2,654) |
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Financial instruments measured at amortized costs1 |
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Cash and cash equivalents | 246,881 | – | – | – | 246,881 | – | – | – | – |
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Receivables | – | – | 71,717 | – | 71,717 | – | – | – | – |
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Rent and other deposits | – | – | 340 | 669 | 1,009 | – | – | – | – |
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Current bank liabilities | – | – | – | – | – | (2,126) | – | – | (2,126) |
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Bank loans | – | – | – | – | – | (3,555) | – | (2,247) | (5,802) | (5,816) |
Payables and accrued expenses | – | – | – | – | – | – | (39,525) | – | (39,525) |
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Total financial instruments | 246,881 | 326 | 72,057 | 851 | 320,115 | (8,198) | (39,525) | (2,384) | (50,107) |
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Reconciling items2 | – | – | 11,721 | – | 11,721 | – | (13,848) | – | (13,848) |
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Balance at June 30, 2016 | 246,881 | 326 | 83,778 | 851 | 331,836 | (8,198) | (53,373) | (2,384) | (63,955) |
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- The carrying amount of financial instruments measured at amortized costs is a reasonable approximation of their fair value due to their short-term nature. Bank and other loans are the only exception due to their long-term nature.
- Receivables/payables arising from POC, VAT/other non-income taxes and social security
10.2 Valuation techniques used
Position | Level | Data source | Model |
Currency forwards | Level 2 | Bloomberg | (forward rate - [spot rate +/- forward points]) * amount in foreign currency |
Bank and other loans | Level 2 | Bloomberg | The fair value is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. |
There have been no transfers between the levels in 2015 and 2016.
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