(b) Held-to-maturity investments (c) Loans and receivables (d) Available-for-sale financial assets (iii) Impairment of financial assets other than FVTPL (v) Non-derivative financial liabilities (iv) Derecognition of financial assets (vi) Derivatives Non-derivative financial assets with fixed or determinable pay- ments and fixed maturity dates that the Group has the positive  intent and ability to hold to maturity are classified as held-to- maturity investments. The Group did not have any financial  assets classified as held-to-maturity investments at the end of  this fiscal year. Non-derivative financial assets with fixed or determinable pay- ments not quoted in an active market are classified as loans  and receivables. Subsequent to initial recognition, loans and receivables are  measured at amortised cost using the effective interest  method, less any impairment loss. Amortisation incurred under  the effective interest method is recognised in profit or loss. Non-derivative financial assets designated as available-for-sale  financial assets or not classified as FVTPL, held-to-maturity  investments or loans and receivables are classified as available- for-sale financial assets. Subsequent to initial recognition, available-for-sale financial  assets are measured at fair value, and any gain or loss result- ing from changes in fair value is recognised in other compre- hensive income. Dividends on available-for-sale financial assets  are recognised in profit or loss. When available-for-sale finan- cial assets are derecognised or determined to be impaired, the  cumulative gain or loss that had been recognised in other  comprehensive income is reclassified to profit or loss. Financial assets, other than those at FVTPL, are assessed for  any objective evidence of impairment at the end of each quarter. Financial assets are impaired when there is objective evi- dence of impairment as a result of one or more events that  occurred after the initial recognition of the financial assets and  these events have adversely affected the estimated future cash  flows of the financial assets that can be reliably estimated. Objective evidence of impairment of financial assets includes: The Group is engaged in derivative transactions and mainly  uses foreign exchange forward contracts to manage its expo- sure to risks from changes in foreign exchange rates. Derivatives are initially recognised at fair value of the date  when the derivative contracts are entered into and are subse- quently measured at their fair values at the end of each quarter. Hedge accounting is not applied to the above derivative  transactions at the end of the fiscal year and changes in the  fair value of derivatives are immediately recognised in profit  or loss. The Group measures non-derivative financial liabilities at  amortised cost using the effective interest method after initial  recognition. The Group derecognises financial liabilities when  obligations are fulfilled or when obligations are discharged,  cancelled, or expired. When the contractual rights with respect to the cash flows  from a financial asset expire or the contractual rights to receive  the cash flows from a financial asset have been transferred  and substantially all the risks and rewards of ownership of the  financial asset are transferred, the Group derecognises the  financial asset. When there is objective evidence that an available-for-sale  financial asset is impaired, the cumulative loss that had been  recognised in other comprehensive income is transferred to  profit or loss. Any subsequent recovery in the fair value of  impaired equity instruments classified as available-for-sale  financial assets is recognised in other comprehensive income. The Group assesses the existence of objective evidence of  impairment for loans and receivables and held-to-maturity  financial assets, individually for separately significant assets or  collectively for assets with no individual significance. When  there is objective evidence of impairment on those financial  assets, the difference between the asset’s carrying amount  and the present value of estimated future cash flows dis- counted at the financial asset’s original effective interest rate is  recognised in profit or loss as an impairment loss. The impairment loss for loans and receivables are recog- nised through the allowance for doubtful accounts, and the  carrying amount of a loan and receivable is written off against  the allowance account when it is subsequently considered  uncollectible. When an event occurring after the impairment  was recognised causes the amount of the impairment loss to  decrease, a reversal of the impairment loss is recognised in  profit or loss. · significant financial difficulty of the issuer or obligor; · breach of contract, such as a default or delinquency in interest  or principal payments; · probability that the borrower will enter bankruptcy or other  financial reorganisation; or · disappearance of an active market for the financial assets. In the case of equity instruments classified as available-for- sale, a significant or prolonged decline in the fair value of the  equity instrument below its cost would be considered as  objective evidence of impairment. Astellas Pharma Inc.  _ Annual Report 2014 114