4.4 Financial Instruments
This section summarises the classification and measurement of financial instruments. It presents the categories and carrying amounts of financial instruments, followed by an overview of their valuation within the fair value measurement hierarchy, where applicable.
Carrying Amounts and Fair Values of Financial Instruments by Category
The fair values of financial instruments such as cash and cash equivalents, trade receivables, trade payables, and other assets and liabilities are considered to approximate their carrying amounts due to their short-term nature. The table below presents the carrying amounts and fair values of financial instruments by category:
2025 | 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
at 31 December | in CHF thousand | Carrying amount | Fair value | Carrying amount | Fair value | ||||
Financial assets | ||||||||
Cash and cash equivalents | 92,664 | 92,664 | 71,485 | 71,485 | ||||
Trade receivables | 31,879 | 31,879 | 30,680 | 30,680 | ||||
Other assets² | 15,260 | 15,260 | 6,293 | 6,293 | ||||
Loan receivables | 4,720 | 4,720 | 7,298 | 7,298 | ||||
Other financial assets | 914 | 914 | 966 | 966 | ||||
Measured at amortised cost | 145,437 | 145,437 | 116,722 | 116,722 | ||||
Financial liabilities | ||||||||
Trade payables | 4,675 | 4,675 | 4,400 | 4,400 | ||||
Other liabilities² | 9,505 | 9,505 | 4,058 | 4,058 | ||||
Interest-bearing borrowings¹ | 222,633 | 223,999 | 236,533 | 238,374 | ||||
Non-controlling interest put liability¹ | 21,172 | 22,160 | 20,726 | 21,248 | ||||
Measured at amortised cost | 257,985 | 260,339 | 265,717 | 268,080 | ||||
Contingent consideration | – | – | 5,100 | 5,100 | ||||
Other financial liabilities | – | – | 251 | 251 | ||||
Measured at fair value through profit or loss | – | – | 5,351 | 5,351 |
1The fair value for disclosure purposes is level 2 and is derived from current market interest rates available to the Group.
2Previous year’s figures restated to reflect changes in the composition of other assets and other liabilities.
The table above only includes components of the respective financial captions in the statement of financial position that qualify as financial instruments. As a result, certain non-financial components are excluded, and the amounts presented may not fully reconcile with the corresponding financial captions in the statement of financial position. It does not include fair value information for lease liabilities as they are exempted from the fair value disclosure.
Financial Instruments Carried at Fair Value
Fair values are allocated to one of the following three hierarchical levels:
- Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
- Level 2: inputs other than quoted prices included within level 1 observed for the asset or liability, either directly or indirectly.
- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
2025 | 2024 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
at 31 December | in CHF thousand | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||
Financial liabilities | ||||||||||||||||
Contingent consideration | – | – | – | – | – | – | 5,100 | 5,100 | ||||||||
Other financial liabilities | – | – | – | – | – | – | 251 | 251 | ||||||||
Total measured at fair value | – | – | – | – | – | – | 5,351 | 5,351 |
There were no transfers between level 1 and level 2 fair value measurements during the reporting period. Details of the determination of level 3 fair value measurements are set out below:
In CHF thousand | 2025 | 2024 | ||
|---|---|---|---|---|
Balance at 1 January | 5,351 | – | ||
Resulting from business combinations | – | 4,364 | ||
Fair value adjustment | 1,299 | 987 | ||
Payments made | (6,650) | |||
Balance at 31 December | – | 5,351 |
The fair value adjustment relates exclusively to the call option written by the Group to the minority shareholder of Flatfox AG. The minority shareholder waived the call option in return for a payment of CHF 1,550 thousand. In addition, the contingent consideration liability arising from the acquisition of moneyland.ch AG was paid in full.
Accounting Policies
Financial instruments are recognised when the Group enters into a contractual agreement related to the instrument. Financial assets and liabilities are initially measured at fair value.
Financial assets are subsequently measured at amortised cost using the effective interest rate method, net of impairment losses. They comprises assets held to collect contractual cash flows that represent solely payments of principal and interest. Derecognition occurs when the rights to receive the cash flows expire or are transferred and substantially all risks and rewards of ownership are transferred.
Financial liabilities are classified as either at amortised cost or at fair value through profit or loss. Those measured at amortised cost are subsequently measured using the effective interest rate method. Derecognition occurs when the contractual obligations are discharged, cancelled or expire.
Contractual obligations to purchase the Group’s own equity instruments, such as put options on non-controlling interests, result in the recognition of a financial liability, which is recorded at the present value of the exercise amount within equity. The financial liability is measured at amortised cost using the effective interest rate method, with the unwinding of interest also recognised in equity.