Term deposits and bonds (included in share in bonds) are held in part for the payment of the capital expenditure commitments of €1,377 million.

Under IAS 39, the share in Eurofima is measured at cost, as this interest does not have a quoted price in an active market and its fair value could not be reliably measured. No such option exists under IFRS 9 and equity investments shall be measured at fair value in accordance with IFRS 13. The net asset value of this interest was used as the best approximation of fair value. This resulted in a revaluation of this interest as at 1 January 2018 by € 45 million in favour of the fair value reserve.

Accounting policies (per 1 January 2018)

On initial recognition, loans, receivables and deposits are included by the Group from the date on which they first arose. All other financial assets are first recognised on the transaction date.  The Group no longer recognises a financial asset in the balance sheet once the contractual rights to the cash flows from the asset expire, or if the Group transfers the contractual rights to the cash flows from the financial asset by means of a transaction in which virtually all risks and benefits associated with ownership of the asset are transferred or not retained, and control of the asset transferred is not retained either. If the Group retains or creates an interest in the financial assets being transferred, then that interest is included as a separate asset or liability.

The Group ceases recognition of a financial liability in the balance sheet once the contractual obligations have been fulfilled or cancelled or have expired. Financial assets and liabilities are netted and the resulting net amount recognised in the balance sheet only if the Group has a legally enforceable entitlement to netting and if it intends to net the amounts or to realise the asset and the liability simultaneously. The Group uses the following financial instruments.

Non-derivative financial instruments

Non-derivative financial instruments include investments in equity securities, deposits and bonds, trade and other receivables, cash and cash equivalents. Non-derivative financial instruments are initially recognised at fair value. Subsequent to initial recognition, non-derivative financial instruments are measured as described below.

Financial assets in the case of fair value through profit or loss

These assets are subsequently carried at fair value. Net gains and losses, including any interest or dividend income, are recognised in the income statement.

Financial assets at amortised cost

These assets are subsequently carried at amortised cost using the effective interest method. Amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairments are recognised in the income statement. Any gain or loss arising on derecognition is recognised in the income statement.

Fair value through profit or loss - debt investment

These assets are subsequently carried at fair value. Interest income is calculated using the effective interest method, foreign exchange gains and losses and impairments are recognised in the income statement. Other net gains and losses are recognised in other comprehensive income. On derecognition, the gains and losses accumulated in other comprehensive income are reclassified to the income statement.

Fair value recognised through other comprehensive income - equity investment

These assets are subsequently carried at fair value. Dividends are recognised as income in the income statement, unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in other comprehensive income and are never reclassified to the income statement.

Impairment of financial assets

At each reporting date, a financial asset is assessed to determine whether there is objective evidence that it may be impaired on the basis of expected credit losses. A financial asset is impaired if there is objective evidence that one or more events has/have had a negative effect on the expected future cash flows of that asset.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between the carrying amount and the present value of the expected future cash flows, discounted at the original effective interest rate. An impairment loss in respect of investments 'fair value through profit or loss' is calculated on the basis of the fair value.

Important financial assets are individually tested for impairment. Other financial assets
are assigned to groups with similar credit risk characteristics and are assessed collectively.

All impairment losses are recognised as an expense in the income statement.
An impairment loss is reversed if the reversal can be objectively related to an impairment loss.
An impairment loss is reversed only to the extent that it relates to an event occurring after the impairment loss was recognised. For financial assets measured at amortised cost and fair value through profit or loss - debt investment, the reversal is credited to the income statement.

The Group's credit risks, currency risks and interest rate risks associated with the other investments are explained in more detail in note 26.