15. Derivative Financial Instruments and Hedging Reserves
At the balance sheet date, the fair value of derivative financial instruments was as follows:
|
|
2023 |
|
2022 |
||||
|---|---|---|---|---|---|---|---|---|
CHF million |
|
Assets |
|
Liabilities |
|
Assets |
|
Liabilities |
Derivatives for hedging |
|
60.0 |
|
10.5 |
|
38.3 |
|
15.6 |
Other derivatives |
|
5.5 |
|
2.6 |
|
0.8 |
|
0.1 |
Total |
|
65.5 |
|
13.1 |
|
39.1 |
|
15.7 |
The carrying amount (contract value) of the outstanding forward-currency and raw material contracts as at December 31, 2023, is CHF 1,317.1 million (CHF 1,200.7 million in prior year). Value changes in those derivatives qualifying for hedge accounting according to IFRS 9 are shown within other comprehensive income.
The majority of the net hedging result, amounting to a net gain of CHF 49.3 million as of December 31, 2023 (CHF 22.8 million in prior year), which is shown as hedging reserve in the consolidated statement of changes in equity, will be released to the position “cost of materials” in the consolidated income statement at various dates within the next 24 months. Other derivative instruments, which are used for hedging purposes in line with the risk policy, do not qualify for hedge accounting under the criteria of IFRS 9. Changes in value of such derivatives are disclosed within the position “other” as part of the note “Net Financial Result”.