10 Cash and Cash Equivalents / Securities
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€ million |
2018 |
2017 |
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Securities and fixed-term deposits1 |
46.4 |
260.3 |
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Of which current |
42.0 |
218.2 |
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Of which noncurrent |
4.4 |
42.1 |
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Cash and cash equivalents |
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Cash equivalents |
141.2 |
187.1 |
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Demand deposits, cash on hand |
199.9 |
99.8 |
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Total |
341.1 |
286.9 |
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Demand deposits and cash on hand are shown at their nominal amounts. Cash equivalents comprise fixed-term deposits and commercial paper (from issuers with first-class credit standing) classified as “held to collect, amortized cost.” The general impairment model is applied to demand deposits and fixed-term deposits. These are classified as financial instruments with a low value risk, given that WACKER enters into banking relationships only with investment-grade counterparties. In the case of banks covered by Germany’s Deposit Protection Fund, no impairments are determined as these deposits are secured via the Fund. Any impairments that arise are negligible. None of WACKER’s cash funds are subject to currency export restrictions.
Securities include fixed-interest securities and fixed-term deposits assigned to the “held-to-collect and for sale / FVOCI” category. The IFRS 9 impairment model is applied to these financial instruments as well. As WACKER’s investment regulation states that the company can purchase only investment-grade securities, the impairment risk is low. Fund shares assigned to the “trading / FVPL” category are not covered by the IFRS 9 impairment model.