Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements 2.7 Capital Structure and Financial Instruments

The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness for cash flow hedges as of 31 December 2022:

Carrying values

OCI

Amounts reclassified from hedge reserve to profit or loss

Changes in values of the hedging instrument

Hedge inefficiency recorded in financial result

Other changes in value of the hedge reserve

Asset

Liability

(In € million)

Foreign currency risk

Net forward sales contracts

1,492

(7,643)

4,429

1,146

(146)

(2,358)

Foreign exchange options

0

0

0

0

0

0

Embedded Derivatives

0

(60)

36

0

0

(7)

Interest rate risk

0

0

0

0

0

0

Commodity swap risk

6

0

(2)

0

(1)

0

Equity swap risk

1

(4)

0

0

0

0

Total

1,499

(7,707)

4,463

1,146

(147)

(2,365)

37.6 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:

2023

(In € million)

2022

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

Held for trading

182

497

Designated on initial recognition

(110)

95

Financial assets at amortised cost

(63)

(232)

2

Financial assets at fair value through OCI (previously available ‑ for ‑ sale)

(66)

55

Financial liabilities measured at amortised cost

263

(75)

Net losses of €-350 million (2022: €-1,169 million) are recognised directly in equity relating to financial assets at fair value. Interest income from financial assets or financial liabilities through profit or loss is included in net gains or losses.

37.7 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.

87

Airbus

Financial Statements 2023