In accordance with IAS 32 and IAS 39 investments in companies other than subsidiaries and associates are classified as available-for-sale financial assets and are measured at fair value.
Gains and losses resulting from fair value adjustments are recorded in a special equity reserve. When there are impairment losses or when the assets are sold, the gains and losses recognized previously to shareholders’ equity are then posted to the income statement.
It should be noted that purchases and sales are recognized on the date of the trade.
This category also includes financial assets bought or issued that are classified as either held for trading or at fair value through profit and loss on adoption of the fair value option.
For a more complete description of the principles regarding financial assets we would refer readers to the note specially prepared on the subject (“financial instruments”).