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Financial instruments

  Category   2020   2019
in CHF 000       Carrying value   Fair value   Carrying value   Fair value
Cash and cash equivalents   1   276 153   276 153   291 194   291 194
Current financial assets     311   311    
of which forward exchange contracts   4   311   311    
Trade accounts receivable   2   214 396   214 396   242 930   242 930
Current financial receivables   2   35 938   35 938   33 294   33 294
Other non-current financial assets     35 963   35 846   26 789   26 717
of which other investments – equity instruments   3   32 699   32 699   22 497   22 497
of which other investments – no equity instruments   4   168   168   345   345
of which loans receivable   2   761   644   457   385
of which other non-current financial assets – equity instruments   3       467   467
of which other non-current financial assets – no equity instruments   2   2 336   2 336   3 023   3 023
                   
Current financial liabilities     5 350   5 350   22 675   22 675
of which forward exchange contracts   6   0   0   572   572
of which other current financial liabilities   5   5 350   5 350   22 103   22 103
Trade accounts payable   5   69 073   69 073   81 137   81 137
Other liabilities   5   15 234   15 234   10 339   10 339
Non-current financial liabilities     19 693   19 985   17 346   17 921
of which liabilities to banks and loans   5   17 855   18 147   15 121   15 696
of which purchase price obligations   6       30   30
of which obligations to purchase own equity instruments   6   382   382   454   454
of which other non-current financial liabilities   6   1 456   1 456   1 741   1 741
                   
Categorisation of financial instruments as per IFRS 9                  
Cash and cash equivalents – at amortised cost   1   276 153   276 153   291 194   291 194
Loans and receivables – at amortised cost   2   253 430   253 313   279 704   279 632
Financial assets – at fair value with value adjustments in other comprehensive income   3   32 699   32 699   22 964   22 964
Financial assets – at fair value with value adjustments in profit or loss   4   479   479   345   345
Financial liabilities – at amortised cost   5   (107 512)   (107 804)   (128 700)   (129 275)
Financial liabilities – at fair value with value adjustments in profit or loss   6   (1 838)   (1 838)   (2 797)   (2 797)

TX Group uses the following measurement hierarchy for determining the fair value of financial instruments:

  • Level 1 Listed prices on active markets for identical assets and liabilities.

  • Level 2 Fair values calculated on the basis of observable market data. Either listed prices on non-active markets or non-listed prices are used. Such market values may also be derived from prices indirectly.

  • Level 3 Fair values not calculated on the basis of observable market data.

The forward exchange transactions included under current financial assets are the only financial instruments that are classified as Level 2 in the fair value hierarchy. As of 31 December they amount to CHF 0.3 million net and, not therefore being material, no further disclosure is made in respect of them.

Among other things, equity instruments associated with other financial assets (Lykke Coins) and any purchase prices due are classified as Level 3 in the fair value hierarchy. Here too, a more detailed disclosure is not made as these are not deemed to be material. Other investments recorded under other non-current financial assets are also classified as Level 3. Investments are mainly made during the start-up phase when no observable market prices are available. A suitable alternative valuation method is therefore applied in order to determine the fair value of the investment. These can include the price paid by third parties during financing rounds, a calculation based on the discounted cash flow (DCF) method or the market price as determined with the help of multiples. Input factors are things like contract details during the financing rounds, including the price paid by third parties, or business plans that contain the latest estimates in respect of trends for revenues and costs. As regards the two other most important investments, in quantitative terms, in MoneyPark AG and Joveo Inc., which are recorded in the balance sheet with a value of CHF 18.5 million as of 31 December 2020, the valuation was performed on a DCF basis during the second half of 2020. Any remaining other investments (including their sensitivity) are deemed not to be material for TX Group. The valuations of other investments are reviewed on a half-yearly basis. The change in respect of other investments in the reporting year can be seen in the table below.

in CHF 000   2020   2019
Other investments – as of 1.1.   22 842   12 125
Additions   7 482   11 960
Disposals   (177)  
Valuation increase via other comprehensive income   2 720   500
Valuation reduction via other comprehensive income     (1 743)
Other investments – as of 31.12.   32 866   22 842

All other financial instruments valued at fair value are classified as Level 1 in the fair value hierarchy. There were no transfers between the three levels.

Forward exchange transactions
in CHF 000   2020   2019
Contract volume   29 786   40 290
Fair value, due   311   (572)
Due within 1 year   311   (572)
Due within 1 and 5 years    
Due beyond 5 years    
         
Cash flow hedge disclosures        
Cash flow hedges recognised directly in other comprehensive income   251   452
Used for hedging as planned   886   1 069
Recognised directly in the income statement    

Forward euro contracts totalling CHF 28.5 million existed as of the balance sheet date to hedge the foreign currency risk arising from the framework agreements for the purchase of newsprint and magazine paper. The hedging transactions are recognised in the income statement upon realisation, together with the underlying transactions.

Depending on their maturity dates, the fair values of these derivative financial instruments are reported under current or non-current financial receivables or liabilities as appropriate.