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18. Fair value hierarchy of financial assets and liabilities at fair value

 

2013



Financial assets at fair value Fair values at the end of the period
EUR million Total Level 1 Level 2 Level 3
Non-current receivables



Derivatives




Interest rate swaps, hedge accounting 4.8
4.8
Trade and other receivables



Derivatives




Currency forwards, hedge accounting 0.0
0.0
Financial assets at fair value through profit or loss



Money market investments 69.3
69.3
Bonds 50.5 39.6 10.8
Derivatives




Currency forwards, non-hedge accounting 0.3
0.3

Electricity forwards, non-hedge accounting 0.0 0.0

Financial assets available-for-sale




Debt certificates




Equity fund investments


0.7
Total 124.9 39.7 85.2 0.7






Financial liabilities at fair value Fair values at the end of the period
EUR million Total Level 1 Level 2 Level 3
Trade and other payables



Derivatives




Currency forwards, non-hedge accounting 0.5
0.5

Currency forwards, hedge accounting 0.0
0.0

Electricity forwards, non-hedge accounting 1.1 1.1

Total 1.6 1.1 0.5 0.0






           

No transfers between fair value hierarchy levels 1 and 2 were made during 2013 or 2012. The Group identifies and recognizes transfers between different levels as the transaction is exercised or at the moment when the parameters change materially.

 

2012



Financial assets at fair value Fair values at the end of the period
EUR million Total Level 1 Level 2 Level 3
Non-current receivables



Derivatives




Interest rate swaps, hedge accounting 6.9
6.9
Financial assets at fair value through profit or loss



Money market investments 46.8
46.8
Bonds 54.1
54.1
Derivatives




Currency forwards, non-hedge accounting 0.1
0.1

Electricity forwards, non-hedge accounting 0.0 0.0

Financial assets available-for-sale




Debt certificates 1.8
1.8

Equity fund investments 0.8

0.8
Total 110.4 0.0 109.6 0.8






Financial liabilities at fair value Fair values at the end of the period
EUR million Total Level 1 Level 2 Level 3
Trade and other payables



Derivatives




Currency forwards, non-hedge accounting 1.3
1.3

Electricity forwards, non-hedge accounting 0.6 0.6

Total 1.9 0.6 1.3 0.0






           

Hierarchy levels

 

Level 1: Fair values are based on the quoted prices of identical assets groups or liabilities in active markets.

 

Level 2: Fair values are, to significant degree, based on data other than quoted prices included in level 1, but on data that can be either directly or indirectly verified for the asset group or liability in question. To determine the fair value of these instruments, the Group uses generally accepted valuation models that are, to a significant degree, based on verifiable market data.

 

Level 3: Fair values are based on other data than verifiable market data regarding the asset group or liability.

 

Investments in money markets instruments are measured at fair value by employing the market interest rate curves on the reporting date. The fair values of investments in bonds are based on the quoted market prices on the reporting date (Level 1) or a price based on observable market information (Level 2). The measurement of equity funds relies on valuations delivered by external investment managers, based on the general valuation techniques used by asset managers. The fair value of currency forward contracts is calculated by valuing forward contracts at the forward rates on the reporting date. The fair values of interest rate swaps are calculated by discounting the forecasted cash flows of the contracts with the market interest rate curves on the reporting date. The fair values of electricity derivatives are based on the quoted market prices on the reporting date.

 

Reconciliation of Level 3 financial assets

 

2013


Investments
EUR million


in equity funds
Carrying amount 1 Jan


0.8

Profits and losses:




In income statement


0.0

In other comprehensive income


0.2

Exercises


-0.2
Carrying amount 31 Jan


0.7






Total profits and losses recognized on assets held at the end of the reporting period

In financial income and expenses


0.1






2012


Investments
EUR million


in equity funds
Carrying amount 1 Jan


1.5

Profits and losses:




In income statement




In other comprehensive income


-0.4

Exercises


-0.4
Carrying amount 31 Jan


0.8





Total profits and losses recognized on assets held at the end of the reporting period

In financial income and expenses


-0.1