Financial results

Notes to the consolidated financial statements

Download note 37.2 in XLS

37.2 Financial instruments which are measured at fair value in the statement of financial position

The table below presents classification of financial assets and financial liabilities which are measured at fair value based on the fair value hierarchy in the consolidated statement of financial position.

 

 

 

No reclassifications between Level I and Level II took place in the analyzed period. No items were reclassified from or to Level III, either.

As the scale of derivative transactions which until June 2015 were entered into with banks with investment rating only and which have been concluded solely through KDPW CCP clearing house since July 2015, is inconsiderable, the Group’s measurement of derivatives does not take into account the counterparty credit risk or own credit risk, which the Group believes exert a marginal effect on measurement of its derivatives.

Reconciliation of the change in the balance of Level III financial instruments in 2015 and in 2014, whose fair value is determined using measurement methods based on non-observable input data, has been presented below.

 

 

Given a rise in the credit spread by 1 b.p., the potential effect on a change in the fair value of Level III debt securities would be PLN -1 thousand (negative value), whereas given a drop in the credit spread by 1 b.p., the potential effect would be PLN 1 thousand. For Level III equity instruments denominated in EUR, a 1% rise in the EUR/PLN rate would have the potential effect on a change in their fair value of PLN 148 thousand, whereas a 1% drop in the EUR/PLN rate would have the potential effect of PLN -148  thousand. 


 

 


Inputs used for fair value measurement of assets and liabilities have been presented in the table below. 

 

The Group presents equity instruments with the fair value of PLN 14 733 thousand in “Investment financial assets available for sale” in the statement of financial position of the Group. The details of the measurement of these instruments have been presented in note 25. As at 31 December 2015 and 31 December 2014, the item “Investment financial assets available for sale” in the consolidated statement of financial position presents the Group’s equity instruments with a carrying amount of, respectively, PLN 81 thousand and PLN 8 thousand, which are measured at cost as their fair value cannot be measured reliably. Such instruments are not subject to the fair value hierarchy analysis performed for investment financial assets available for sale.