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.