BORUSSIA DORTMUNDGmbH & Co. Kommanditgesellschaft auf Aktien, Dortmund are not held for trading and for which the option be credit-impaired once there are objective was exercised to recognise changes in fair value substantial indications, such as the debtor's through other comprehensive income. significant financial difficulty, or knowledge of an application for bankruptcy or past due event. If the After initial measurement, the financial assets in asset appears uncollectible, it and the loss allowance this category are measured at fair value through are derecognised. other comprehensive income and any unrealised gains or losses are recognised in other comprehensive income. Upon disposal of debt Derecognition of financial assets and instruments in this category, the cumulative gains financial liabilities and losses from the fair value measurement recognised in other comprehensive income are Financial assets reclassified to profit or loss. Interest received A financial asset is derecognised when the from financial assets measured at fair value contractual rights to receive the cash flows from the through other comprehensive income are asset expire or the financial asset is transferred to generally recognised through profit or loss using another party. The latter case is deemed to have the effective interest rate method. The changes occurred when all significant risks and rewards in the fair value of equity instruments measured associated with ownership of the asset have been at fair value through other comprehensive transferred or when the control over the asset has income are not recognised through profit or loss been relinquished. and instead are reclassified to revenue reserves upon disposal. Dividends are recognised Financial liabilities through profit or loss when the legal claim to A financial liability is derecognised when the payment arises. obligation underlying this liability is discharged or cancelled or expires. In cases where an existing Impairment of financial assets financial liability is exchanged against another At the end of every reporting period, a loss allowance financial liability of the same lender with is recognised for financial assets that are not substantially different terms and conditions or if the measured at fair value through profit or loss. This terms and conditions of an existing liability are loss allowance reflects the expected credit losses materially modified, such exchange or modification for these instruments. The expected credit loss is treated as a derecognition of the original liability model consists of three stages: a loss allowance is and the recognition of a new liability. Any difference recognised at an amount equal to the 12-month between the relevant carrying amounts is expected credit losses (stage 1), at an amount equal recognised in profit or loss. to the lifetime expected credit losses if the credit risk has increased significantly since initial recognition Financial assets and liabilities are offset against one (stage 2), or in the case of credit-impaired financial another and the net balance is presented in the assets (stage 3). A financial asset is considered to consolidated statement of financial position if an 188