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CONSOLIDATED FINANCIAL REPORT | EXPLANATORY NOTES
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B.9 FINANCIAL ASSETS
Financial assets are initially recorded at fair value and classified in one of the following categories on the
basis of their nature and the purpose for which they were acquired:
(a)
Financial assets at fair value through profit or loss;
(b)
Loans and receivables;
(c)
Available-for-sale financial assets.
Purchases and sales of financial assets are accounted for at the settlement date.
Financial assets are derecognised when the right to receive cash flows from the instrument expires and the
Group has substantially transferred all the risks and rewards relating to the instrument and its control.
(a) Financial assets at fair value through profit or loss
Financial assets classified in this category are represented by securities held for trading, having been
acquired for the purpose of selling in the near term. Derivatives are treated as securities held for trading,
unless they are designated as hedging instruments and are therefore classified under "Derivatives”.
Financial assets at fair value through profit or loss are initially recorded at fair value and the related
transaction costs are expensed immediately to the income statement.
Subsequently, financial assets at fair value through profit or loss are measured at fair value. Assets in this
category are classified as current assets (except for Derivatives falling due after more than 12 months).
Gains and losses from changes in the fair value of financial assets at fair value through profit or loss are
reported in the income statement as "Finance income" and "Finance costs", in the period in which they arise.
This does not apply to metal derivatives, whose fair value changes are reported in "Fair value change in
metal derivatives". Any dividends from financial assets at fair value through profit or loss are recognised as
revenue when the Group's right to receive payment is established and are classified in the income statement
under "Share of net profit/(loss) of associates and dividends from other companies".
(b) Loans and receivables
Loans and receivables are non-derivative financial instruments with fixed or determinable payments that are
not quoted in an active market. Loans and receivables are classified in the statement of financial position as
"Trade and other receivables" and treated as current assets, except for those with contractual due dates of
more than twelve months from the reporting date, which are classified as non-current (See Note 5. Trade
and other receivables).
These assets are valued at amortised cost, using the effective interest rate. The process of assessment to
identify any impairment of trade and other receivables is described in Note 5.
(c) Available-for-sale financial assets
Available-for-sale assets are non-derivative financial instruments that are explicitly designated as available
for sale, or that cannot be classified in any of the previous categories; they are classified as non-current