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financial statements 2011
49
29. Fair value of financial assets and liabilities
Book
Fair
Book
Fair
Note
value
value
value
value
eur 1000
2011
2011
2010
2010
Financial assets
Other financial assets
17
413
413
432
432
Financial assets recognized
at fair value through profit or loss
- Interest rate derivatives, hedge accounting
not applied
21
7
7
63
63
Sales receivables and other receivables
21
22 546
22 546
21 599
21 599
Other current financial assets
17
76
76
77
77
Cash and cash equivalents
22
6 229
6 229
7 038
7 038
Financial liabilities
Bank loans
26
17 053
15 892
20 933
19 776
Finance lease liabilities
26
3 730
3 730
4 436
4 436
Accounts payable and other liabilities
27
23 984
23 984
21 949
21 949
Financial assets recognized
at fair value through profit or loss
- Interest rate derivatives, hedge accounting
not applied
27
249
249
275
275
Fair value determination principles applied by the Group on all financial instruments
When determining the fair values of the financial assets and liabilities shown in the table, the following price quo-
tations, assumptions and measurement models have been used.
Financial assets, equity and fund investments and other investments
Financial assets consist of cash, demand deposits and other current, extremely liquid investments. Other financial
assets comprise unlisted equity investments. Unlisted equity investments were measured at acquisition cost
because it was not possible to measure them at fair value using the methods of measurement. There are no
functional markets for unlisted equities and, for the time being, the Group has no intention of disposing of these
investments. Other current financial assets comprise Finnish equities listed on the NASDAQ OMX Helsinki Stock
Exchange and are measured at the price quotation on the reporting period’s end date.
Derivatives
For derivatives, the measurement principle is counterparty price quotation.
Sales receivables and other receivables
The initial carrying amount of sales receivables corresponds to their fair value because there is no material dis-
counting effect when taking into account the maturity of the receivables.
Bank loans and financial lease liabilities
Financial liabilities are initially recognized at fair value. Subsequently, all financial liabilities are measured at amor-
tized cost. The fair values of liabilities are based on discounted cash flows. The discount rate applied is the rate at
which the Group could acquire corresponding loan funding externally at the reporting period’s end date. Interest-
bearing liabilities are as a rule tied to six-month market interest rates. Expenses arising from interest-bearing
liabilities are recognized as liabilities during the financial period during which they arose.
Accounts payable and other liabilities
The initial carrying amount of accounts payable and other liabilities corresponds to their fair value because there
is no material discounting effect when taking into account the maturity of the liabilities.