6.Financial instruments

6.1.Carrying amounts in accordance with IFRS 9

In accordance with IAS 9 or IAS 17, the carrying amounts of financial assets and liabilities are grouped into classes or measurement categories as follows:

We refer to section 2.1 for the carrying amounts of financial assets and liabilities as of 30 September 2018, grouped to classes or measurement categories in accordance with IAS 39 or IAS 17.

6.2.Measurement at fair value

6.2.1.Fair value of financial assets and liabilities that are measured regularly at fair value

Pursuant to IFRS 13, financial instruments that are measured at fair value are classified within a fair value hierarchy. In view of possible uncertainties relating to possible estimates of the fair values, a distinction is made between three levels:

Level 1: Measurement on the basis of a published price quotation for identical assets or liabilities in an active market.

Level 2: Measurement on the basis of inputs that are observable either directly or indirectly in the market and measurements based on prices quoted in inactive markets.

Level 3: Measurement on the basis of inputs not observable in the market.

If the inputs used to determine the fair value of an asset or liability are attributable to different levels of the fair value hierarchy, the measurement at fair value is wholly assigned to the the fair value hierarchy level that corresponds to the lowest input which, in the aggregate, is material for the measurement.

The financial instruments measured at fair value are assigned to levels 1 to 3 as follows:

Level 3 financial instruments have developed as follows:

The upward revaluation resulting from the initial application of IFRS 9 in the amount of EUR 4,702.0 thousand and the appreciation in the amount of EUR 6,857.9 thousand concern the most important one of Other Investments (FVOCI). The fair value of this other investment is determined using a measurement method based on capitalisation of earnings. Essential input factors are the cash flow assumptions from mid-term planning and the discount rate. The appreciation was recognised as other comprehensive income in the item “Change in value of investments and securities”.

An increase (reduction) of the cash flow assumptions by 25% would have resulted in an increase (reduction) of the OCI in the amount of EUR 3,081.5 thousand (EUR -3,081.5 thousand). An increase (reduction) of the discount rate by 50 basis points would have resulted in a reduction (increase) of the OCI in the amount of EUR -784.1 thousand (EUR 898.4 thousand).

6.2.2.Valuation techniques and input used in measuring fair values

In general, the fair values of the financial assets and liabilities correspond to their market prices on the balance sheet date. If active market prices are not directly available, fair values that are not of minor significance are calculated using recognised actuarial measurement models and current market parameters (particularly including interest rates, foreign exchange rates and credit ratings of contractual partners). This is done by discounting the cash flows from the financial instruments to the balance sheet date.

The following valuation techniques and inputs were used:

6.2.3.Fair values of financial assets and liabilities that are not measured regularly at fair value, however for which the fair value must be disclosed

The items accounts receivables, receivables from affiliated companies, receivables from joint arrangements and associated companies, other financial assets, as well as fixed term deposits and current investments are characterised by predominantly short remaining terms. This means that their carrying amounts as of the balance sheet date roughly represent their fair value. If they are material and do not have a variable interest rate, then the fair value of non-current lendings corresponds to the present value of the payments associated with the assets, taking into consideration the current market parameters in each case (interest rates, credit spreads).

Trade payables, liabilities to affiliated companies, liabilities to joint arrangements and associated companies and other financial liabilities usually have short remaining terms. The values on the balance sheet are approximately the fair values. If they are material and do not bear interest at a variable rate, the fair value of financial liabilities is determined using the present value of the payments associated with the liabilities, taking into consideration the respectively applicable market parameters (interest rates, credit spreads).

The following financial assets and liabilities have a fair value different from the carrying amount:

The fair values of the level 3 financial liabilities disclosed above were determined in accordance with generally accepted valuation techniques that are based on discounted cash flow analyses. Material input is the discount rate, which takes into account the default risk of the counterparty.