Airbus - Financial Statements 2022

4. Notes to the IFRS Company Financial Statements Capital Structure and Financial Instruments

17.6 Net Gains or Net Losses

The Company’s net gains or net losses recognised in profit or loss in 2022 and 2021, respectively are as follows:

31 December

2022

2021

(In € million)

Financial assets or financial liabilities at fair value through profit or loss: Held for trading

(46)

29

Designated on initial recognition

142

318

(1)

Financial assets at amortised cost

(90)

268

Financial assets at fair value through OCI

55

20

Financial assets at fair value through profit or loss

464

57

Financial liabilities measured at amortised cost

(111)

(737)

Total

414

(45)

(1) Including impairment and Expected Credit Losses on Financial assets at amortised cost.

17.7 Impairment Losses

Loss allowances — For its portfolio of debt instruments including bonds, term deposits and commercial papers, the Company measures loss allowances at an amount that represents credit losses resulting from default events that are possible within the next 12 months, unless the credit risk on a financial instrument has increased significantly since initial recognition. In the event of such significant increase in credit risk the Company measures loss allowances for that financial instrument at an amount equal to its life ‑ time expected losses, i.e. at an amount equal to the expected credit losses that result from all possible default events over the expected life of that financial instrument. The Company applies the low credit risk exemption allowing the Company to assume that there is no significant increase in

credit risk since initial recognition of a financial instrument, if the instrument is determined to have low credit risk at the reporting date. Similarly, the Company has determined that its trade receivables generally have low credit risk. The Company applies the simplified approach permitted by IFRS 9 of measuring expected credit losses of trade receivables on a lifetime basis from initial recognition. Investment grade instruments — The Company considers a significant increase in credit risk to have occurred, if there is a downgrade by four notches such that the instrument moves into a high yield bucket as a direct result of the downgrade. With respect to instruments that were high yield at initial recognition, a downgrade by four notches is considered as a significant increase in credit risk.

Stage 1 12 ‑ month ECL

Stage 2 Life ‑ time ECL

Stage 3 Credit impaired ECL

Total

(In € million)

At 1 January 2022

7

6

0

13

Change in financial assets and risk parameters

1

(6)

0

(5)

At 31 December 2022

8

0

0

8

Stage 1 12 ‑ month ECL

Stage 2 Life ‑ time ECL

Stage 3 Credit impaired ECL

Total

(In € million)

At 1 January 2021

4

94

0

98

Change in financial assets and risk parameters

3

(88)

0

(85)

At 31 December 2021

7

6

0

13

There are no significant impairment on Financial Assets recognised in Profit and Loss in 2022 and 2021 respectively.

124