3.3Financial Assets and Liabilities
Financial Assets
in CHF 1 000 | December 31, 2024 | December 31, 2023 | ||
|---|---|---|---|---|
Term deposits | 40 000 | - | ||
Derivative financial instruments | 34 | 1 914 | ||
Investments | 7 376 | 4 619 | ||
Other financial assets | 181 | 1 312 | ||
Total | 47 592 | 7 846 | ||
of which current financial assets | 40 034 | 1 956 | ||
of which non-current financial assets | 7 558 | 5 890 |
Term deposits consist of bank deposits with maturities of more than three but less than twelve months from the date of acquisition. Investments comprise an equity investment as well as a simple agreement for future equity in innovative start-ups in the heating, ventilation, and air-conditioning systems sector. In 2024, an immaterial valuation allowance was recognized on other financial assets (2023: immaterial valuation allowance).
Financial Liabilities
in CHF 1 000 | December 31, 2024 | December 31, 2023 | ||
|---|---|---|---|---|
Bank loans | 10 119 | 3 966 | ||
Lease liabilities | 12 021 | 10 606 | ||
Derivative financial instruments | 2 835 | 112 | ||
Other financial liabilities | 388 | 138 | ||
Total | 25 363 | 14 822 | ||
of which current financial liabilities | 7 563 | 3 814 | ||
of which non-current financial liabilities | 17 800 | 11 008 |
Bank loans are entered into locally by subsidiaries, at commercial terms prevailing in the local environment and some are subject to standard financial and non-financial covenants. The Group is in compliance with these covenants, and they are not expected to affect the classification of the bank loans within the next twelve months.
The changes in financial liabilities were as follows:
in CHF 1 000 | 2024 | 2023 | ||
|---|---|---|---|---|
As at January 1 | 14 822 | 11 473 | ||
Interest paid financial borrowings | -332 | -596 | ||
Interest paid lease liabilities | -403 | -342 | ||
Repayment of financial borrowings | -30 284 | -59 707 | ||
Repayment of lease liabilities | -3 955 | -3 824 | ||
Proceeds from financial borrowings | 36 140 | 63 669 | ||
Cash flow from financing activities | 1 166 | -800 | ||
Non-cash effective movements lease liabilities | 5 094 | 5 505 | ||
Other non-cash effective movements | 2 967 | -1 229 | ||
Interest expenses financial borrowings | 353 | 626 | ||
Interest expenses lease liabilities | 403 | 342 | ||
Translation differences | 557 | -1 093 | ||
Non-cash effective movements | 9 375 | 4 150 | ||
As at December 31 | 25 363 | 14 822 |
Interest paid not related to financial liabilities and therefore not included in the table above amounted to CHF 0.8 million (2023: CHF 0.3 million).
Management judgment is required to determine the lease liabilities. Further details regarding lease accounting are described in note Property, Plant and Equipment.
The fair value of investments is determined using valuation techniques. The Group uses its judgement to select a variety of methods and make assumptions. For details of the key assumptions used, and the impact of changes to these assumptions, see note Financial Risk Management.
Financial assets are measured at amortized costs, with the exception of investments held at fair value through other comprehensive income as well as investments held at fair value through profit and loss. Derivative financial instruments are measured at fair value through profit and loss with any changes therein recognized in the financial result. Financial assets measured at amortized costs are subject to the impairment requirements of IFRS 9.
Financial liabilities are initially recognized at fair value and subsequently measured at amortized costs using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit and loss. Lease liabilities are initially measured at the present value of the lease payments. Derivative financial instruments are measured at fair value through profit and loss with any changes therein recognized in the financial result.