BORUSSIA DORTMUNDGmbH & Co. Kommanditgesellschaft auf Aktien, Dortmund Impairment testing at the rate implicit in the lease. That amount is reduced The useful lives of intangible assets and items of by cumulative depreciation and amortisation and, property, plant and equipment are all finite. If there where appropriate, write-downs and impairment are specific indications of possible impairment, losses. Due to the existing lease agreements, Borussia individual assets are tested for impairment, both at Dortmund is entitled to control the use of various the level of the individual assets and at the level of assets against payment of the lease obligations. the cash-generating units. A cash-generating unit is the smallest identifiable group of assets that Financial instruments generate cash flows, which are independent of cash Financial instruments under IFRS are classified in flows generated by other assets to the furthest line with the format of the statement of financial extent possible. An impairment loss is recognised position. The table under Note 31 provides a for the amount by which the carrying amount reconciliation of the individual classes and exceeds the recoverable amount. The recoverable categories of IFRS 9 to the items of the statement amount is the higher of net realisable value and of financial position and the fair values of the value in use. If the reason for an impairment financial instruments disclosed therein. write-down recognised in prior years no longer exists, the impairment loss is reversed until the Under IFRS 9, financial assets are classified into carrying amount of the asset, net of depreciation one of three categories depending on their use: and amortisation, equals the amount that would "at amortised cost"; "at fair value through other have been determined if an impairment loss had comprehensive income (FVOCI)"; and "at fair value not been recognised. through profit or loss (FVTPL)". Financial assets are classified on the basis of the entity's business Leases model for managing the financial assets and the The Group's leases relate in particular to developed contractual cash flow characteristics of the land and leased operating and office equipment. financial assets. The business model is determined at the portfolio level and is based on Under the standard, lessees recognise a right-of-use management's intentions and past transaction asset (representing their right to use an underlying patterns. The cash flows are reviewed on the basis asset) and a lease liability (representing their of the individual assets. obligation to make lease payments). As a rule, financial assets are measured at fair value Pursuant to the exemptions under IFRS 16, Borussia upon initial recognition. Transaction costs that are Dortmund has opted to henceforth not apply the directly attributable to the acquisition of the financial accounting requirements to leases with a term of asset are included in the initial recognition. Regular 12 months or less and to leases for which the way purchases or sales of financial assets are underlying asset is of low value. accounted for at the trade date. The amount recognised in the statement of financial position is Right-of-use assets recognised in accordance equal to the maximum exposure to credit risk. The with IFRS 16 are measured at cost as at the subsequent measurement of financial assets commencement date and are generally discounted depends on their classification: 186