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 2014: 
         
Assets (NOKm) Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit/loss        
- Derivatives 227 4,139   - 4,366
- Bonds and money market certificates 3,711 11,945   - 15,655
- Equity instruments 49   - 1,038 1,087
- Fixed interest loans   -   - 2,522 2,522
Financial assets avaliable for sale        
- Equity instruments   -   - 36 36
Total assets 3,987 16,084 3,596 23,667
         
Liabilities Level 1 Level 2 Level 3 Total
Financial liabilities through profit/loss        
- Derivatives 763 2,806   - 3,569
Total liabilities 763 2,806   - 3,569

 

The following table presents the Group's assets and liabilities measured at fair value at 30 June 2013: 
         
Assets (NOKm) Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit/loss        
- Derivatives 101 2,683   - 2,784
- Bonds and money market certificates 4,260 12,682   - 16,942
- Equity instruments 98   - 821 919
- Fixed interest loans   -   - 2,752 2,752
Financial assets avaliable for sale        
- Equity instruments   -   - 46 46
Total assets 4,459 15,365 3,619 23,444
         
Liabilities Level 1 Level 2 Level 3 Total
Financial liabilities through profit/loss        
- Derivatives 100 2,188   - 2,288
Total liabilities 100 2,188   - 2,288

 

The following table presents the Group's assets and liabilities measured at fair value at 31 December 2013: 
         
Assets (NOKm) Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit/loss        
- Derivatives 111 2,939   - 3,050
- Bonds and money market certificates 4,003 11,539   - 15,542
- Equity instruments 67   - 909 976
- Fixed interest loans   -   - 2,648 2,648
Financial assets avaliable for sale        
- Equity instruments   -   - 40 40
Total assets 4,181 14,477 3,597 22,256
         
Liabilities  Level 1   Level 2   Level 3   Total 
Financial liabilities through profit/loss        
- Derivatives 334 1,961   - 2,295
Total liabilities 334 1,961   - 2,295

 

The following table presents the changes in the instruments classified in level 3 as at 30 June 2014: 
(NOKm) Fixed interest loans Equity instruments through profit/loss Equity instruments available for sale Total
Opening balance 1 January   2,648   909   40 3,597
Investment in periode 21   16   -   37
Disposals in the periode   -153 -80   - -233
Gain or loss on financial instruments 6   192 -3   195
Closing balance 30 June 14   2,522   1,038   36 3,596

 

The following table presents the changes in the instruments classified in level 3 as at 30 June 2013: 
(NOKm) Fixed interest loans Equity instruments through profit/loss Equity instruments available for sale Total
Opening balance 1 January   2,585   601   46 3,231
Investment in periode 330   249   -   579
Disposals in the periode   -166 -4   - -170
Gain or loss on financial instruments 3 -24   - -21
Closing balance 30 June 13   2,752   821   46 3,619

 

The following table presents the changes in the instruments classified in level 3 as at 31 December 2013: 
(NOKm) Fixed interest loans Equity instruments through profit/loss Equity instruments available for sale Total
Opening balance 1 January   2,585   601   46 3,231
Investment in periode 413   388   -   801
Disposals in the periode   -343 -151   - -495
Gain or loss on financial instruments   -6   72 -6   61
Closing balance 31 December 13   2,648   909   40 3,597
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