Financial Statements 2023

4. Notes to the IFRS Company Financial Statements 4.5 Capital Structure and Financial Instruments

16.6 Net Gains or Net Losses

The Company’s net gains or net losses recognised in profit or loss in 2023 and 2022, respectively are as follows:

31 December

2023

(In € million)

2022

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

Held for trading

30

(46)

Designated on initial recognition

(193)

142

(1)

Financial assets at amortised cost

(49)

(90)

Financial assets at fair value through OCI

(66)

55

Financial assets at fair value through profit or loss

163

464

Financial liabilities measured at amortised cost

286

(111)

Total

171

414

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

16.7 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

Stage 2

Stage 3

12 ‑ month ECL

Life ‑ time ECL Credit impaired ECL

Total

(In € million)

At 1 January 2023

8

0

0

8

Change in financial assets and risk parameters

(1)

0

0

(1)

4

7

At 31 December 2023

7

0

0

Stage 1

Stage 2

Stage 3

12 ‑ month ECL

Life ‑ time ECL Credit impaired ECL

(In € million)

Total

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

There are no significant impairment on Financial Assets recognised in Profit and Loss in 2023 and 2022 respectively.

141

Airbus

Financial Statements 2023