5 Prepaid and accrued expenses
Prepaid and accrued expenses mainly comprise the replacement values of derivative financial instruments.
Group companies hedge their transaction-related foreign currency risks centrally with Schindler Holding Ltd., which aggregates transaction risks by currency and thus creates natural hedging relationships. The remaining transaction risks are hedged with high-quality credit-rated financial institutions.
Derivative financial instruments are measured at their market value. Positive replacement values are recognized within prepaid expenses whereas negative replacement values are recognized within accrued expenses. Revaluation gains and losses are recognized in financial income and expenses respectively.
|In CHF million||2021||2020|
|Positive replacement values – third parties||17||13|
|Positive replacement values – Group companies||13||11|
|Other prepaid expenses||1||2|
|Total prepaid expenses||31||26|
|Negative replacement values – third parties||17||17|
|Negative replacement values – Group companies||9||9|
|Other accrued expenses||14||10|
|Total accrued expenses||40||36|
Forward exchange transactions with a positive replacement value have a nominal amount of CHF 1 352 million (previous year: CHF 922 million).
Forward exchange transactions with a negative replacement value have a nominal amount of CHF 1 094 million (previous year: CHF 1 585 million).