Note 15 - Measurement of fair value of financial instruments

Financial instruments at fair value are classified at various levels.

Level 1: Valuation based on quoted prices in an active market
Fair value of financial instruments that are traded in the active markets is based on market price on the balance sheet date. A market is considered active if market prices are easily and regularly available from a stock exchange, dealer, broker, industry group, price-setting service or regulatory authority, and these prices represent actual and regularly occurring market transactions at an arm’s length. This category also includes quoted shares and Treasury bills.

Level 2: Valuation based on observable market data
Level 2 consists of instruments that are valued by the use of information that does not consist in quoted prices, but where the prices are directly or indirectly observable for the assets or liabilities concerned, and which also include quoted prices in non-active markets.

Level 3: Valuation based on other than observable data
If valuation data are not available for level 1 and 2, valuation methods are applied that are based on non-observable information.

 

The following table presents the Group's assets and liabilities measured at fair value at 30 June 2017: 
         
Assets (NOKm) Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit/loss        
- Derivatives 2 4,672 - 4,673
- Bonds and money market certificates 3,225 17,087 - 20,312
- Equity instruments 992 - 413 1,405
- Fixed interest loans - 43 3,631 3,673
Financial assets avaliable for sale        
- Equity instruments - - 70 70
Total assets 4,219 21,801 4,114 30,134
         
Liabilities Level 1 Level 2 Level 3 Total
Financial liabilities through profit/loss        
- Derivatives 7 3,755 - 3,761
- Equity instruments 222 4 - 226
Total liabilities 229 3,758 - 3,987

 

The following table presents the Group's assets and liabilities measured at fair value at 30 June 2016: 
         
Assets (NOKm) Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit/loss        
- Derivatives 77 6,850 - 6,927
- Bonds and money market certificates 3,375 16,487 - 19,862
- Equity instruments 818 - 516 1,334
- Fixed interest loans - 43 4,345 4,388
Financial assets avaliable for sale        
- Equity instruments 44 - 87 131
Total assets 4,314 23,379 4,948 32,640
         
Liabilities Level 1 Level 2 Level 3 Total
Financial liabilities through profit/loss        
- Derivatives 92 5,832 - 5,924
- Equity instruments 284 6 - 290
Total liabilities 376 5,837 - 6,214

 

The following table presents the Group's assets and liabilities measured at fair value at 31 December 2016: 
         
Assets (NOKm) Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit/loss        
- Derivatives 44 4,708 - 4,752
- Bonds and money market certificates 2,511 15,046 - 17,557
- Equity instruments 959 - 524 1,483
- Fixed interest loans - 43 3,783 3,826
Financial assets avaliable for sale        
- Equity instruments - - 60 60
Total assets 3,514 19,796 4,367 27,676
         
Liabilities Level 1 Level 2 Level 3 Total
Financial liabilities through profit/loss        
- Derivatives 48 4,026 - 4,074
- Equity instruments 173 8 - 181
Total liabilities 221 4,034 - 4,255

 

 

The following table presents the changes in the instruments classified in level 3 as at 30 June 2017: 
         
(NOKm) Fixed interest loans Equity instruments through profit/loss Equity instruments available for sale Total
Opening balance 1 January 3,783 524 60 4,367
Investment in periode 219 11 - 230
Disposals in the periode -386 -141 - -528
Gain or loss on financial instruments 15 19 10 44
Closing balance  3,631 413 70 4,114

 

The following table presents the changes in the instruments classified in level 3 as at 30 June 2016: 
 
(NOKm) Fixed interest loans Equity instruments through profit/loss Equity instruments available for sale Total
Opening balance 1 January 4,405 574 108 5,087
Investment in periode 148 15 31 194
Disposals in the periode -230 -47 -3 -281
Gain or loss on financial instruments 22 -26 -49 -52
Closing balance  4,345 516 87 4,948

 

The following table presents the changes in the instruments classified in level 3 as at 31 December 2016: 
 
(NOKm) Fixed interest loans Equity instruments through profit/loss Equity instruments available for sale Total
Opening balance 1 January 4,405 574 108 5,087
Investment in periode 770 28 1 799
Disposals in the periode -1,347 -66 - -1,413
Gain or loss on financial instruments -44 -13 -50 -106
Closing balance  3,783 524 60 4,367
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