4.4 Other financial assets
Other current financial assets
CHF million | 31.3.2025 | 31.3.2024 | ||||||||||
Financial assets at amortized cost | Financial assets at fair value through profit or loss | Total | Financial assets at amortized cost | Financial assets at fair value through profit or loss | Total | |||||||
Marketable securities | 0.2 | 0.2 | 0.2 | 0.2 | ||||||||
Positive replacement value of forward foreign exchange contracts | 1.6 | 1.6 | 0.6 | 0.6 | ||||||||
Loans to third parties | 10.4 | 10.4 | 9.8 | 9.8 | ||||||||
Total | 10.4 | 1.8 | 12.2 | 9.8 | 0.8 | 10.7 | ||||||
The Group regularly hedges its net exposure from foreign currency balance sheet positions with forward contracts. Such contracts are not qualified as cash flow hedges and are, therefore, not accounted for using hedge accounting principles. Gains and losses on these transactions are recognized directly in the income statement (refer to Note 4.7).
Other non-current financial assets
CHF million | 31.3.2025 | 31.3.2024 | ||||||||||
Financial assets at amortized cost | Financial assets at fair value through profit or loss | Total | Financial assets at amortized cost | Financial assets at fair value through profit or loss | Total | |||||||
Loans to associates | 0.6 | 0.6 | 0.9 | 0.9 | ||||||||
Loans to third parties | 57.2 | 57.2 | 53.0 | 53.0 | ||||||||
Rent deposits | 3.8 | 3.8 | 2.8 | 2.8 | ||||||||
Other non-current financial assets | 2.9 | 2.9 | 3.9 | 3.9 | ||||||||
Total | 61.5 | 2.9 | 64.4 | 56.7 | 3.9 | 60.6 | ||||||
The loans are primarily denominated in CAD, CHF, EUR, GBP, JPY, PLN and USD. Loans to third parties consist mainly of loans to customers. As of March 31, 2025, the respective repayment periods vary between one and nine years and the interest rates vary generally between 1% and 5%.
Other non-current financial assets mainly consist of certain minority interests in patent and software development companies specific to the hearing aid industry.
Accounting policies
Financial assets are classified into the following categories:
- Financial assets at amortized cost
- Financial assets at fair value through profit or loss (FVPL)
The classification depends on the business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will be recorded in the income statement.
At initial recognition, the Group measures a financial asset at its fair value. In the case of financial assets at amortized cost, the fair value includes transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss. Subsequent measurement of debt instruments depends on the Groupʼs business model for managing the asset and the cash flow characteristics of the asset.
Financial assets at amortized cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in the income statement.
Financial assets at fair value through profit or loss (FVPL)
Assets that do not meet the criteria for amortized cost are measured at FVPL. A gain or loss on a debt investment that is subsequently measured at FVPL is recognized in the income statement in the period in which it arises.