Note 6 Investments in bonds

€ million


Carrying amount as at 1 January 2017



Movements in 2017


Currency translation differences


Fair value movements





Carrying amount as at 31 December 2017



Movements in 2018


Currency translation differences


Value adjustment due to IFRS 9, including expected credit loss





Carrying amount as at 31 December 2018


Investments in bonds as at year-end 2018 comprises investments in a debt instrument issued by a large financial institution which serves to cover obligations arising from two cross-border lease contracts (2017: €193 million). The carrying amount of the related lease obligations was €156 million at year-end 2018 (2017: €148 million).

With the application of IFRS 9 in 2018, the bond investments item underwent a change in the recognition and measurement of the assets concerned. Given the business model, i.e. ‘hold to maturity’, the bonds are carried at amortised cost under IFRS 9. This change means that the carrying amount of the bonds was reduced by €43 million, charged to other reserves. The original recognition in equity of a revaluation reserve of €38 million and the associated deferred tax of €13 million ceases to apply, this change likewise being accounted for in other reserves; This resulted in a net increase in other reserves of €8 million, recognised in the opening balance as at 1 January 2018. The impact of the new impairment model was analysed and the result is a write-down of €2 million (2017: nil). Together with the movement of €43 million connected with the change in the basis of measurement, this makes up the changes in carrying amount due to IFRS 9, including credit losses, totalling €45 million.