amortized any more� Assets classified as held for sale, disposal groups, items recognized inother comprehensive income associated with the assets classified as held for sale as well asliabilities included in the disposal group are presented separately in the balance sheet�A discontinued operation is a component of the group’s business that has been disposedof or will be disposed of in accordance with a coordinated plan� It represents a separatemajor line of business or geographical area of operations� The profit or loss of a discontinuedoperation is reported separately from the continuing operations in the consolidatedstatement of comprehensive income�InventoriesInventories are carried at the lower of cost and net realizable value� Cost is determinedusing the first-in first-out (FIFO) method� The cost of finished goods and work-in-progresscomprise direct purchase and manufacturing cost, other direct costs and a proportion ofthe related production overheads based on normal operating capacity� Net realizable valueis the estimated amount that can be realized from the sale in normal course of business lessthe estimated costs of completion and the estimated costs necessary to make the sale�Inventories are presented net of an impairment loss recognized for obsolete and slow-movinginventories�Financial instrumentsFINANCIAL ASSETSFiskars classifies its financial assets in the following categories: financial assets at fair valuethrough profit or loss, financial assets at fair value through OCI, loans and receivables andavailable-for-sale financial assets� Financial assets are classified at initial recognition basedon their purpose of use� For investments not at fair value through profit or loss, the directlyattributable transaction costs are included in the original costs of the financial assets� Allpurchases or sales of financial assets are recognized or derecognized using trade dateaccounting� The group derecognizes financial assets when it has lost its right to receive thecash flows or when it has transferred substantially all the risks and rewards to an externalparty�FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS / OCIIn this category are classified such financial assets that are held for trading or are designatedas financial assets at fair value through profit or loss upon initial recognition (the fair valueoption)� In Fiskars this category comprises those derivative instruments that do not meet thehedge accounting criteria or for which hedge accounting is not applied� Based on the newIFRS 9 standard that Fiskars adopted on January 1, 2018, Fiskars Group records the changein fair value of the Wärtsilä holding in other comprehensive income instead of recognizing fairvalue changes in the income statement�These financial assets are measured at fair value both at initial recognition and subsequently�The fair values of the listed securities are based on quoted rates at the end of the reportingperiod and fair value changes, both realized and unrealized gains and losses are recognizedin the income statement under financial items� The fair value measurement principles ofderivative instruments are described below under Derivatives and hedge accounting�
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