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ANNUAL REPORT AND CONSOLIDATED ACCOUNTS 2012
purpose. The Board of Directors decides on the classifi-
cation when the investments are initially recorded and
re-assesses that classification at each report date.
a) Financial assets at the fair value through results
This category is subdivided into two parts: financial as-
sets held for negotiation and those that are designated
at the fair value through results from the start. A finan-
cial asset is classified in this category if it is acquired for
the main purpose of being sold on the short term or if
designated as such by the Board of Directors. Deriva-
tives are also classified as held for negotiation, except
if they are classified for hedging. Assets in this category
are classified as current if they are held for negotiation
or are realisable within 12 months after the consolidat-
ed statement of financial position date.
b) Loans granted and accounts
Loans granted and other credits are non-derivative
financial assets with fixed or determinable payments
and that are not listed on an active market. These as-
sets originate when the group supplies cash, goods
or services directly to a debtor, without intending to
negotiate the time at which it will receive payment
for the said cash goods or services. They are included
in current assets, except when they mature in more
than 12 months after the consolidated statement of
financial position date, in which case they are classi-
fied as non-current assets.
c) Investments held until maturity
Investments held until maturity is non-derivative finan-
cial assets with fixed or determinable payments and
fixed maturities, which the group’s Board of Directors
has the intention and capacity to maintain until matu-
rity. These investments are included in non-current as-
sets, except those falling due within 12 months as of the
consolidated statement of financial position date, which
are classified as current assets.
d) Financial assets available for sale
Financial assets available for sale are non-derivative
assets which are designated in this category or are not
classified in any of the other categories. They are in-
cluded in non-current assets, except when the Board
of Directors wishes to sell the investment within 12
months as of the consolidated statement of financial
position date.
2.8.2 Recognition and measurement
Purchases and sales of investments are recognised
on the transaction date – the date on which the group
promises to purchase or sell the asset. Investments are
initially recognised at the fair value, including transac-
tion costs, when the financial assets are not shown at
the fair value through results (in this case, they are
also recognised at the fair value, but the transaction
costs are recorded in costs in the year at the time they
are incurred). Financial investments are derecognised
when the rights to receive cash from them expire or
have been transferred and the group has substantially
transferred all the risks and benefits from its posses-
sion. Financial assets available for sale and financial as-
sets at the fair value through results are subsequently
valuated at the fair value. Loans granted and accounts
receivable and investments held until maturity are
valuated at the amortised cost, using the effective rate
method. Gains and losses - either realised or not re-
alised and arising from alterations to the fair value of
the category of the financial assets at their fair value
through results - are included in the consolidated state-
ment of comprehensive income in the year in which
they arise. Unrealised gains and losses, resulting from
alterations to the fair value of non-monetary securi-
ties, classified as available for sale, are recognised in
the equity. When the securities classified as available
for sale are sold or are under impairment, the accumu-
lated adjustments to the fair value are included in the
