21. (i) Total interest income and expense from financial instruments

The following table presents the gross and net amounts as of December 31, 2022, and 2021, of financial instruments that have been offset or that are subject to an enforceable global netting arrangement or similar agreement but have not been netted:

 

(a) Offsetting arrangements

NORMA Group grants volume-based discounts to its customers. According to the terms of the supply agreements and the applicable GTC, these amounts are offset against the trade receivables payable to NORMA Group from these customers and only the respective net amounts are settled. The respective amounts are thus shown as net amounts in NORMA Group’s Consolidated Statement of Financial Position.

 

(b) Master netting arrangements – not currently enforceable

NORMA Group enters into derivative transactions in accordance with the global netting agreements (master agreement) of the International Swaps and Derivatives Association (ISDA) and other corresponding national master agreements (“German Master Agreement,” for example). These agreements do not meet the criteria for offsetting as they only grant the right to offset in the event of future events, such as the default or insolvency of the Group or counterparties. The  TABLE ‘NETTING OF FINANCIAL INSTRUMENTS’ shows the possible financial effects of netting under the current global netting agreements.