Annual Report 2015

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

 

2015

       

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

       

Other non-current investments

6.2

   

6.2

Financial assets at fair value through profit or loss

       

Money market investments

123.4

 

123.4

 

Bonds

45.5

35.8

9.7

 

Derivative contracts

       
 

Interest derivatives, non-hedge accounting

1.9

 

1.9

 
 

Currency derivatives, non-hedge accounting

0.1

 

0.1

 

Financial assets available-for-sale

       
 

Equity fund investments

0.2

   

0.2

Total

177.3

35.8

135.1

6.4

           

Financial liabilities at fair value

Fair values at the end of the period

EUR million

Total

Level 1

Level 2

Level 3

Trade payables and other liabilities

       

Derivative contracts

       
 

Currency derivatives, non-hedge accounting

0.0

 

0.0

 
 

Electricity derivatives, non-hedge accounting

0.9

0.9

   

Total

0.9

0.9

0.0

 
           

No transfers between fair value hierarchy levels 1 and 2 were made during 2015 or 2014. The Group identifies and recognizes transfers between different levels as the transaction is exercised or at the moment when the parameters change materially.

           

2014

       

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

       

Other non-current investments

5.9

   

5.9

Derivative contracts

       
 

Interest rate derivatives, hedge accounting

3.9

 

3.9

 

Financial assets at fair value through profit or loss

       

Money market investments

104.3

 

104.3

 

Bonds

41.7

32.0

9.7

 

Derivative contracts

       
 

Currency derivatives, non-hedge accounting

2.2

 

2.2

 
 

Electricity derivatives, non-hedge accounting

0.0

0.0

   

Financial assets available-for-sale

       
 

Equity fund investments

0.3

   

0.3

Total

158.2

32.0

120.1

6.2

           

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

       

Derivative contracts

       
 

Currency forwards, non-hedge accounting

0.2

 

0.2

 
 

Electricity forwards, non-hedge accounting

0.6

0.6

   

Total

0.9

0.6

0.2

 
           

Hierarchy levels

           

Level 1: Fair values are based on the quoted prices of identical asset 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

           

2015

       

EUR million

     

Shares and investments

in equity funds

Carrying amount 1 Jan

     

6.2

 

Profits and losses:

       
 

In income statement

     

0.0

 

In other comprehensive income

     

-0.1

 

Additions

     

0.4

 

Exercises

     

0.0

Carrying amount 31 Jan

     

6.4

           

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

 
 

In financial income and expenses

     

0.0

           

2014

       

EUR million

     

Shares and investments

in equity funds

Carrying amount 1 Jan

     

6.6

 

Profits and losses:

     

0.0

 

In income statement

     

-0.2

 

In other comprehensive income

     

0.3

 

Exercises

     

-0.5

Carrying amount 31 Jan

     

6.2

         

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

 

In financial income and expenses

     

0.0