Moncler Group | Annual Report 2024 Consolidated Financial Statements 356 |
On initial recognition of a security not held for trading, the Group
may make an irrevocable choice to present subsequent
changes in fair value in the other components of the comprehensive
income statement. This choice is made for each asset.
At the time of subsequent measurement, the measurement
made at the time of recognition is updated and any changes
in fair value are recognised in the statement of comprehensive
income. As for the category above, these assets are subject
to the impairment model described in the paragraph Trade
receivables, f inancial assets and other current and
non-current receivables.
All f inancial assets not classif ied as valued at amortised
cost or at FVOCI, as indicated above, are valued at FVTPL.
All derivative f inancial instruments are included.
On initial recognition, the Group may irrevocably designate
the f inancial asset as measured at fair value through
prof it/(loss) for the period if this eliminates or signif icantly reduces
a misalignment in accounting that would otherwise result from
measuring the f inancial asset at amortised cost or at FVOCI.
At the time of subsequent measurement, f inancial
assets measured at FVTPL are valued at fair value. Gains
or losses arising from changes in fair value are recognised
in the consolidated income statement in the period in which they
are recognised under f inancial income/expenses.
Financial assets are derecognised from the f inancial
statements when the contractual rights to receive cash f lows
from them expire, when the contractual rights to receive
cash f lows from a transaction in which all the risks and rewards
of ownership of the f inancial asset are materially transferred
or when the Group neither transfers nor retains materially all
the risks and rewards of ownership of the f inancial asset and
does not retain control of the f inancial asset.
Financial liabilities are classif ied as valued at amortised cost
or at FVTPL. A f inancial liability is classif ied at FVTPL when
it is held for trading, it represents a derivative or is designated
as such on initial recognition. Financial liabilities at FVTPL
are measured at fair value and any changes including interest
expense are recognised in prof it or loss for the period
Other f inancial liabilities are measured at amortised cost using
the ef fective interest method Interest expense and exchange
rate gainslosses are recognised in prof itloss for
the period
as are any gains or losses from derecognition
The Groups f inancial instruments consist primarily o
f cash
and cash equivalents accounts receivable accounts
payable
other current and noncurrent assets and liabilities
investments
borrowings and derivative f inancial instruments
Cash and cash equivalents
Cash and cash equivalents include cash and shortterm
deposits held with banks and most liquid assets that are readily
convertible into cash and that have insignif icant risk of change
in value. Bank overdrafts are recorded under current liabilities
on the Group’s consolidated statement of f inancial position.
Trade receivables, f inancial assets and other current
and non-current receivables
Trade and other receivables, generated when the Group provides
money, goods or services directly to a third party, are classif ied
as current assets, except for items with maturity dates greater
than twelve months after the reporting date.
Current and non-current f inancial assets, other current
and non-current assets, trade receivables, excluding derivatives,
with f ixed maturity or determinable payment terms, are
recognised at amortised cost calculated using the ef fective interest
method. When f inancial assets do not have a f ixed maturity,
they are valued at cost. Notes receivable (due date greater than
a year) with interest rate below that of
the market rate are
valued using the current market rate.
The f inancial assets listed above are valued based
on the impairment model introduced by IFRS 9 or by adopting
an expected loss model, replacing the IAS 39 framework,
which is typically based on the valuation of the incurred loss.
For trade receivables, the Group adopts the so-called
simplif ied approach, which does not require the recognition
of periodic changes in credit risk, but rather the accounting
of an Expected Credit Loss (“ECL") calculated over the entire life
of the credit (so-called lifetime ECL).
In particular, the policy implemented by the Group provides
for the stratif ication of trade receivables based on the days
past due and an assessment of the solvency of the counterparty
and applies dif ferent write-down rates that ref lect the relative
expectations of recovery. The Group then applies an analytical
valuation of impaired receivables based on a debtor’s reliability
and ability to pay the due amounts.
The value of receivables is shown in the statement of f inancial
position net of the related bad debt provision. Write-downs,
made in accordance with IFRS 9 are recognised in the consolidated
income statement net of any positive ef fects associated with
reversals of impairment
Financial liabilities trade payables and other current
and noncurrent payables
Trade and other payables arise when the Group acquires money
goods or services directly from a supplier They are included
within current liabilities except for items with maturity dates
greater than twelve months after the reporting date
Financial liabilities excluding derivatives are recognised
initially at fair value which represents the amount at which
the asset was bought in a current transaction between willing
parties and subsequently measured at amortised cost
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