Financial instruments

	Category	2021		2020
in CHF 000		Carrying amount	Market value	Carrying amount	Market value
Cash and cash equivalents	1	436 465	436 465	276 153	276 153
Current financial assets		19 998	19 998	311	311
of which securities	4	19 998	19 998	–	–
of which forward exchange transactions	4	–	–	311	311
Trade accounts receivable	2	228 535	228 535	214 396	214 396
Current financial assets	2	123 019	123 019	35 938	35 938
Other non-current financial assets		193 498	184 911	35 963	35 846
of which other investments – equity instruments	3	37 360	37 360	32 699	32 699
of which other investments – no equity instruments	4	168	168	168	168
of which loans	2	154 323	145 736	761	644
of which other non-current financial assets – no equity instruments	2	1 647	1 647	2 336	2 336

Current financial liabilities		6 089	6 089	5 350	5 350
of which forward exchange transactions	6	1 675	1 675	0	0
of which other current financial liabilities	5	4 414	4 414	5 350	5 350
Trade accounts payable	5	66 027	66 027	69 073	69 073
Other liabilities	5	4 895	4 895	15 234	15 234
Non-current financial liabilities		72 294	72 245	19 693	19 985
of which bank liabilities and loans	5	69 567	69 518	17 855	18 147
of which purchase price obligations	6	1 064	1 064	–	–
of which obligations to purchase own equity instruments	6	455	455	382	382
of which other non-current financial liabilities	6	1 207	1 207	1 456	1 456

Categorisation of financial instruments as per IFRS 9
Cash and cash equivalents – at amortised cost	1	436 465	436 465	276 153	276 153
Loans and receivables – at amortised cost	2	507 524	498 937	253 430	253 313
Financial assets – at fair value with value adjustments in other comprehensive income	3	37 360	37 360	32 699	32 699
Financial assets – at fair value with value adjustments in profit or loss	4	20 165	20 165	479	479
Financial liabilities – at amortised cost	5	(144 904)	(144 855)	(107 512)	(107 804)
Financial liabilities – at fair value with value adjustments in profit or loss	6	(4 401)	(4 401)	(1 838)	(1 838)

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 -1.7 million net (previous year: 0.3 million) and, not therefore being material, no further disclosure is made in respect of them.

Among other things, equity instruments associated with other financial assets and any purchase price obligations 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 21.5 million as of 31 December 2021, the valuation was performed on a DCF basis or based on the last observable market values. 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	2021	2020
Other investments – as of 1.1.	32 866	22 842
Additions	10 238	7 482
Disposals¹	(9 776)	(177)
Valuation increase via other comprehensive income	4 200	2 720
Valuation reduction via other comprehensive income	–	–
Other investments – as of 31.12.	37 528	32 866

1 Transfer to associates

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 currency contracts

in CHF 000	2021	2020
Contract volume	37 133	29 786
Fair value, due	(1 675)	311
due within 1 year	(1 675)	311
due within 1 to 5 years	–	–
due beyond 5 years	–	–

Details of cash flow hedges
Cash flow hedges recognised directly in other comprehensive income	(1 348)	251
Used for hedging as planned	57	886
Recognised directly in the income statement	–	–

Forward euro contracts totalling CHF 37.1 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.