230 NOTES TO THE FINANCIAL STATEMENTS OF AEGON N.V.  NOTE 2.5 - 3 NOTE 2.9 EQUITY NOTE 2.5 DERIVATIVES NOTE 2.6 CASH AND CASH EQUIVALENTS NOTE 2.7 OTHER ASSETS NOTE 2.8 IMPAIRMENT OF ASSETS Treasury shares are own equity instruments reacquired by the  Group. They are deducted from shareholders’ equity, regardless  of the objective of the transaction. No gain or loss is recognized  Legal reserves in respect of group companies include net  increases in net asset value of subsidiaries and associates since  their first inclusion, less any amounts that can be distributed  without legal restrictions. An asset is impaired if the carrying amount exceeds the  amount that would be recovered through its use or sale.  Tangible, intangible and financial assets, if not held at fair  value through profit or loss, are tested for impairment when  Other assets include fixed assets, derivatives with positive  fair values, other receivables and prepaid expenses. Other  receivables are recognized at fair value and are subsequently  measured at amortized cost. Revaluation account includes unrealized gains and losses  on available for sales assets and the positive changes in value  that have been recognized in net income / (loss) relating to  investments (including real estate) and which do not have  a frequent market listing. Dividends and other distributions to holders of equity  instruments are recognized directly in equity, net of tax.  A liability for non-cumulative dividends payable is not  recognized until the dividends have been declared and  approved.  Incremental external costs that are directly attributable  to the issuing or buying back of own equity instruments  are recognized in equity, net of tax. Cash comprises cash at banks and in-hand. Cash equivalents  are short-term highly liquid investments with original maturities  of three months or less that are readily convertible to known  cash amounts, are subject to insignificant risks of changes in  value and are held for the purpose of meeting short-term cash  requirements. Money market investments that are held for  investment purposes (backing insurance liabilities, investment  liabilities or equity based on asset liability management  considerations) are not included in cash and cash equivalents  but are presented as investment or investment for account of  policyholders. All derivatives are recognized on the balance sheet at fair value.  All changes in fair value are recognized in the income  statement, unless the derivative has been designated as a  hedging instrument in a cash flow hedge or a hedge of a net  foreign investment. Derivatives with positive fair values are  reported as other assets and derivatives with negative values  are reported as other liabilities. With the exception of cash collateral, assets received as  collateral are not separately recognized as an asset until the  financial asset they secure is foreclosed. When cash collateral  is recognized, a liability is recorded for the same amount.  A security that has been received under a borrowing or  reverse repurchase agreement is not recognized as an asset.  A receivable is recognized for any related cash collateral paid  by AEGON. The difference between sale and repurchase price  is treated as investment income. If the Group subsequently sells  that security, a liability to repurchase the asset is recognized  and initially measured at fair value. Financial assets that are lent to a third party or that are  transferred subject to a repurchase agreement at a fixed price  are not derecognized as the Group retains substantially all the  risks and rewards of the asset. A liability is recognized for cash  collateral received, on which interest is accrued.  there are indications that the asset may be impaired.  Irrespective of the indications, goodwill and other intangible  assets that are not amortized are tested at least annually.  For assets denominated in a foreign currency, a decline in  the foreign exchange rates is considered an indication of  impairment.  Financial instruments that are issued by the Company are  classified as equity if they represent a residual interest in the  assets of the Company after deducting all of its liabilities and  the Company has an unconditional right to avoid delivering  cash or another financial asset to settle its contractual  obligation. In addition to common shares and preferred shares,  the Company has issued perpetual securities and convertible  core capital securities. Perpetual securities have no final  maturity date, repayment is at the discretion of AEGON and for  junior perpetual capital securities AEGON has the option to  defer coupon payments at its discretion. Convertible core  capital securities can be converted into ordinary shares of  AEGON, through a predetermined formula, or repaid at the  discretion of AEGON and coupon payments are payable only if  AEGON pays dividends on ordinary shares. Both the perpetual  and convertible core capital securities are classified as equity  rather than debt, are measured at par and those that are  denominated in US dollars are translated using historical  exchange rates.