141 d. Software and other intangible assets 2.7 Investments a. Financial assets, excluding derivatives Measurement Amortized cost The amortized cost of a debt instrument is the amount at which it is measured at initial recognition minus principal repayments, plus  or minus the cumulative amortization of any difference between the initial amount and the maturity amount, and minus any reduction  for impairment. The effective interest rate method is a method of calculating the amortized cost and of allocating the interest income  or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments  or receipts through the expected life of the debt instrument or, when appropriate, a shorter period to the net carrying amount of  the instrument. When calculating the effective interest rate, all contractual terms are considered. Possible future credit losses are  not taken into account. Charges and interest paid or received between parties to the contract that are an integral part of the effective  interest rate, transaction costs and all other premiums or discounts are included in the calculation. Loans and financial assets held-to-maturity are subsequently carried at amortized cost using the effective interest rate method.  Financial assets at fair value through profit or loss are measured at fair value with all changes in fair value recognized in the income  statement as incurred. Available-for-sale assets are recorded at fair value with unrealized changes in fair value recognized in other  comprehensive income. Financial assets that are designated as hedged items are measured in accordance with the requirements for  hedge accounting. Financial assets are initially recognized at fair value excluding interest accrued to date plus, in the case of a financial asset not at fair  value through profit or loss, any directly attributable incremental transaction costs. All remaining non-derivative financial assets are classified as available-for-sale.  Financial assets with fixed or determinable payments that are not quoted in an active market and that the Group does not intend to  sell in the near future or for which the holder may not recover substantially all of its initial investment, other than because of credit  deterioration, are accounted for as loans. To the extent that the Group has the intention and ability to hold a quoted financial asset  with fixed payments to the maturity date, it is classified as held-to-maturity. The following financial assets are measured at fair value through profit or loss: financial assets held for trading, financial assets  managed on a fair value basis in accordance with the Group’s investment strategy and financial assets containing an embedded  derivative that is not closely related and that cannot be reliably bifurcated. In addition, in certain instances the Group designates  financial assets to this category when by doing so a potential accounting mismatch in the financial statements is eliminated or  significantly reduced. Software and other intangible assets are recognized to the extent that the assets can be identified, are controlled by the Group,  are expected to provide future economic benefits and can be measured reliably. The Group does not recognize internally generated  intangible assets arising from research or internally generated goodwill, brands, customer lists and similar items. Software and other intangible assets are carried at cost less accumulated depreciation and impairment losses. Depreciation of  the asset is over its useful life as the future economic benefits emerge and is recognized in the income statement as an expense.  The depreciation period and pattern are reviewed at each reporting date, with any changes recognized in the income statement. An intangible asset is derecognized when it is disposed of or when no future economic benefits are expected from its use or disposal.  Investments comprise financial assets, excluding derivatives, as well as investments in real estate. Financial assets are recognized on the trade date when the Group becomes a party to the contractual provisions of the instrument  and are classified for accounting purposes depending on the characteristics of the instruments and the purpose for which they were  purchased.  Classification