In order to limit currency risks, BVB Merchandising GmbH's pending foreign-currency cash flows from operating activities were hedged as at 30 June 2018. The hedges terminated during the reporting period.
Currency forwards were used to hedge the purchase of materials in foreign currencies. During the reporting period, the hedges related exclusively to US dollars. The value of currency forwards is determined by discounting the future value to the valuation date using the yield curve (net present value method). The valuation is substantiated by bank calculations. In accordance with IFRS 13.72 et seq., currency forwards are classified in Level 2 of the fair value hierarchy since the input parameters used for measurement (yield curves as well as forward rates in US dollars) are observable on the market. The Group does not make its own estimates or assumptions for fair value measurement.
Hedge accounting is not applied to economic hedges for future purchase transactions, meaning that fair value changes in the derivatives are recognised in profit or loss.
The fair value as at 30 June 2019 amounting to EUR 0 thousand (previous year: EUR 33 thousand) was recognised under other financial liabilities.
The carrying amounts of financial assets and liabilities to which IFRS 7 applies are generally identical to their fair values. There are deviations in the transfer receivables from factoring amounting to EUR 270 thousand, non-current lease liabilities amounting to EUR 582 thousand and current lease liabilities amounting to EUR 36 thousand.