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. In the event of permanent losses of value or of disposal, 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 trading date of the transaction.
This category also includes financial assets either bought or issued and then held for trading purposes or classified at fair value through profit and loss in application of the fair value option.
For a more complete description of the treatment of financial instruments we would refer readers to the note specially prepared on the subject.