Bayer AG (2011)

Notes to the Consolidated Financial Statements of the Bayer Group [extracts]

4 Basic principles, methods and critical accounting estimates [extracts]

Financial assets [extracts]

Financial assets comprise loans and receivables, acquired equity and debt instruments, cash and cash equivalents, and derivatives with positive fair values. […]

Financial assets are initially recognized at fair value plus transaction costs. … Interest-free or low-interest receivables are initially reflected at the present value of the expected future cash flows.