Consolidated Financial Statements
2.8 FINANCIAL ASSETS
2.8.1 Classification
The Group classifies its financial assets under the following categories: financial assets at
the fair value through results, loans granted and accounts receivable, investments held until
maturity and financial assets available for sale. The investment is classified according to its
purpose. The Board of Directors decides on the classification when the investments are ini-
tially recorded and re-assesses that classification at each report date.
As at December 31st 2016, Ibersol held only category B and D financial assets.
a) Financial assets at the fair value through results
This category is subdivided into two parts: financial assets held for negotiation and those that
are designated at the fair value through results from the start. A financial asset is classified in
this category if it is acquired for the main purpose of being sold on the short term or if desig-
nated as such by the Board of Directors. Derivatives 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 consolidated 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 assets 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 classified as non-current assets.
c) Investments held until maturity
Investments held until maturity is non-derivative financial assets with fixed or determinable
payments and fixed maturities, which the Group’s Board of Directors has the intention and
capacity to maintain until maturity. These investments are included in non-current assets,
except those falling due within 12 months as of the consolidated statement of financial posi-
tion date, which are classified as current assets.
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