28. Impairments of capitalised financial instruments

Impairments of capitalised financial instruments that are measured at amortised cost are as follows:

€ million

 

Category ‘loans and receivables’

 

thereof loans and advance credit granted

 

thereof other current receivables

As of 1/10/2016

 

109

 

(4)

 

(105)

Currency translation

 

−2

 

(0)

 

(−2)

Additions

 

45

 

(1)

 

(44)

Reversal

 

−17

 

(0)

 

(−17)

Reclassifications in accordance with IFRS 5

 

−1

 

(0)

 

(−1)

Utilisation

 

−17

 

(0)

 

(−17)

Transfers

 

−1

 

(0)

 

(−1)

As of 30/9 – 1/10/2017

 

117

 

(4)

 

(113)

Currency translation

 

−5

 

(0)

 

(−5)

Additions

 

40

 

(0)

 

(40)

Reversal

 

−19

 

(0)

 

(−18)

Reclassifications in accordance with IFRS 5

 

−5

 

(0)

 

(−5)

Utilisation

 

−29

 

(0)

 

(−29)

Transfers

 

1

 

(1)

 

(0)

As of 30/9/2018

 

100

 

(5)

 

(95)

In the category ‘loans and receivables’, which particularly includes loans, trade receivables, receivables from suppliers as well as receivables and other assets in the real estate area, negative earnings effects from impairment losses amount to €18 million (2016/17: €26 million). This also includes earnings from the receipt of cash from receivables that had already been derecognised in anticipation of irrevocability of €1 million (2016/17: €0 million).

In accordance with 5, impairments of the hypermarket business are not included in the profit or loss from continuing operations. Instead, these impairments are included in the movement schedules on the development of impairments of capitalised financial instruments up to the point of reclassification on 30 September 2018; for this reason, the amounts stated in the table above may differ from those stated below the table.

The current financial year includes reclassifications of impairment losses on assets held for sale in the amount of €5 million (2016/17: €1 million).

As in the , no earnings effects existed in the category ‘held to maturity’ or from receivables from finance leases (carrying value according to IAS 17).

In principle, impairment losses on capitalised financial instruments are posted to an adjustment account. They reduce the carrying amount of financial assets.

IFRS (International Financial Reporting Standards)
Internationally applicable rules for financial reporting developed by the IASB. Contrary to the accounting rules under the German Commercial Code, the IFRS emphasise the informational function.
Glossary
Previous year
Period of 12 months, usually cited as reference for statements in an annual report.
Glossary