51 Additional Financial Instrument Disclosures

The section below provides information on the financial assets and financial liabilities not covered by IFRS 9:

• Employee benefits in accordance with IAS 19: gross presentation of right to reimbursement arising from transferred pension obligations in the amount of € 2.0 million (December 31, 2023: € 2.5 million).
• Amount by which the fair value of plan assets exceeds the corresponding obligation of € 1.7 million (December 31, 2023: € 1.5 million).
• Provisions for pensions and similar obligations: € 499.8 million (December 31, 2023: € 512.4 million).

The following table shows the assets and liabilities that are recognized in the balance sheet at fair value and their classification according to the fair value hierarchy:

Accounting Policies

No financial instruments were reclassified to different hierarchy levels vis-à-vis the comparative period.

Due to the current interest rate environment (and the return to more positive market values as a result), counterparty risk premiums were relevant for the interest rate swaps in the consolidated financial statements alongside Vonovia’s own credit risk. As with Vonovia’s own risk, they are derived from rates observable on the capital markets and ranged from 10 to 200 basis points, depending on the residual maturities. Vonovia’s own risk premiums were trading at between 55 and 195 basis points on the same cut-off date, depending on the maturities. Regarding the positive market values of the cross currency swaps in CHF, a counterparty risk of between 90 and 123 basis points was taken into account. With regard to the negative market values of the cross currency swaps in GBP, a risk of 164 basis points assumed by Vonovia itself was taken into account.

The fair values of the cash and cash equivalents, trade receivables and other financial receivables approximate their carrying amounts at the reporting date owing to their mainly short maturities. It was determined that the cash and cash equivalents have a low risk of default due to the external ratings and short residual maturities and that there is no need for any material impairment of cash and cash equivalents.