The Group adopted the IFRS 9 Financial Instruments standard on 1 January 2018. The IFRS 9 standard replaces the sections of IAS 39 that deal with the recognition, classification and measurement of financial assets and liabilities as well as the impairment and hedge accounting of financial assets. The new hedge accounting rules have brought hedge accounting closer to risk management practices. The IFRS 9 standard also brings changes to other standards dealing with financial instruments, such as the IFRS 7 standard. In accordance with IFRS 9, the comparative information of transitional provisions has not been adjusted.
Impairment of financial assets
According to the new impairment model, any impairment must be recognised based on expected credit losses. According to the IFRS 9 standard, the Group applies a simplified provision matrix to recognising the credit risks of trade receivables. According to the IFRS 9 standard, the Group applies a simplified provision matrix to recognising the credit risks in trade receivables, on the basis of which a deductible item is recognised for all trade receivables based on the expected credit losses over the entire period of validity. The Group’s annual credit losses have been very minor, and no significant financing component has been included in the trade receivables.
Changes in the classification of financial assets and liabilities
The classification of financial assets based on the new business model includes three different classes. The “Amortised cost” class includes the Group’s earlier categories of loan and other receivables as well as sales and other receivables. The “At fair value through profit or loss” class includes the Group’s earlier categories of derivative financial instruments and fund holdings recognised at fair value through profit or loss. The “Fair value through other comprehensive income items” class includes the Group’s earlier category of investments available for sale with the exception of fund holdings that were previously included in the investments available for sale category. The adoption of the IFRS 9 standard had no significant impact on the classification and measurement of the Group’s financial assets and liabilities.
Hedge accounting
The hedge accounting model in accordance with the IFRS 9 standard simplifies the application of hedge accounting and is closer to the Group’s risk management strategy. The most important change affecting the Group’s hedge accounting was the removal of IAS 39’s retrospective effectiveness requirement of 80–125% with the introduction of IFRS 9. According to IFRS 9, the assessment of hedge effectiveness is only future-oriented. The ineffectiveness of the Group’s hedging relationships has been and is expected to continue being minor.
The IFRS 9 standard defines three hedge effectiveness requirements for the application of hedge accounting. The first requirement requires a financial connection between the hedged item and hedging instrument. It must be expectable that the changes in the value of the hedging instrument and hedged item are opposite due to the instrument or risk used as the shared basis. Secondly, the standard requires that changes in value due to the financial relationship are not dominated by the impact of credit risk. Thirdly, the hedging rate of the hedging relationship must equal the hedging rate resulting from the amount of the hedged item that the organisation actually hedges and the amount of the hedging instrument that the organisation actually uses for hedging that amount of the hedged item. The IFRS 9 standard requires the same hedging rate that is actually used in risk management. These changes have no significant impact for the Group.
| Measurement
group | Measurement
group | Book value on
1 January 2018 | Book value on
1 January 2018 | |
|
Original (IAS 39) |
New (IFRS 9) | Original
EUR 1 000
| New
EUR 1 000
|
Difference |
| Non-current assets | | | | | |
Loan and other
receivables | Loan and other
receivables |
Amortised cost |
658 678 |
658 678 | |
Investments
in shares |
Available-for-sale
investments | At fair value
through other
comprehensive
income items |
1 934 |
1 934 | |
Derivative financial instruments,
no hedge accounting | Derivative financial
instruments at
fair value through
profit or loss |
Fair value through
profit or loss |
7 497 |
7 497 | |
Derivative financial instruments,
cash flow hedge accounting | Derivative financial
instruments
designated as cash
flow hedges | At fair value
through other
comprehensive
income items |
8 639 |
8 639 | |
Derivative financial instruments,
fair value hedge accounting | Derivative financial
instruments
designated as
fair value hedges |
Fair value through
profit or loss |
19 155 |
19 155 | |
Current assets | | | | | |
Trade and other
receivables | Loan and other
receivables |
Amortised cost |
21 294 |
21 294 | |
Fund holdings | Available-for-sale
investments | Fair value through
profit or loss |
0 |
0 | |
Derivative financial instruments,
no hedge accounting | Derivative financial
instruments at
fair value through
profit or loss |
Fair value through
profit or loss |
10 894 |
10 894 | |
Derivative financial instruments,
cash flow hedge accounting |
Derivative financial
instruments designated
as cash flow hedges | At fair value
through other
comprehensive
income items |
3 775 |
3 775 | |
Derivative financial instruments,
fair value hedge accounting | Derivative financial
instruments designated
as fair value hedges |
Fair value through
profit or loss | | | |
Non-current liabilities | | | | | |
Loan from the State Nuclear Waste
Management Fund | Financial liabilities
measured at
amortised cost |
Amortised cost |
655 518 |
655 518 | |
Other financial
liabilities | Financial liabilities
measured at
amortised cost |
Amortised cost |
3 469 831 |
3 469 831 | |
Derivative financial instruments,
no hedge accounting | Derivative financial
instruments at
fair value through
profit or loss |
Fair value through
profit or loss |
10 093 |
10 093 | |
Derivative financial instruments,
cash flow hedge accounting | Derivative financial
instruments designated
as cash flow hedges | At fair value through
other comprehensive
income items |
12 703 |
12 703 | |
Derivative financial instruments,
fair value hedge accounting | Derivative financial
instruments designated
as fair value hedges |
Fair value through
profit or loss |
1 565 |
1 565 | |
Current liabilities | | | | | |
Current financial
liabilities | Financial liabilities
measured at
amortised cost |
Amortised cost |
392 539 |
392 539 | |
Accounts payable | Financial liabilities
measured at
amortised cost |
Amortised cost |
6 160 |
6 160 | |
Other current liabilities | Financial liabilities
measured at
amortised cost |
Amortised cost |
129 191 |
129 191 | |
Derivative financial instruments,
no hedge accounting | Derivative financial
instruments at fair value
through profit or loss |
Fair value through
profit or loss |
31 236 |
31 236 | |
Derivative financial instruments,
cash flow hedge accounting | Derivative financial
instruments designated
as cash flow hedges | At fair value through
other comprehensive
income items |
4 698 |
4 698 | |
Derivative financial instruments,
fair value hedge accounting | Derivative financial
instruments designated
as fair value hedges |
Fair value through
profit or loss |
0 |
0 | |
