Note 4

Financial instruments

All lending and receivables are recorded at amortised cost. Amortised cost is also used for floating rate securities issued.

The company's debt securities issued with fixed interest rates are accounted for using fair value hedging. Losses and gains, resulting from changes in value due to changes in market interest, of debt securities with fixed interest are recognised in the income statement in the period they arise.

Market prices are used to price lending to and receivables from financial institutions and lending to customers. The prices set include a mark-up for the relevant credit risk. Fair value is estimated as the carrying amount of the lending and receivables stated at amortised cost after deducting impairment.

There are no major differences between the book value and the fair value of loans to credit institutions and customers, and liabilities to credit institutions agreed at variable rates and recognised at amortised cost. Fair value of debt securities is calculated allowing for change in the market interest rates and change in the credit margin.

Financial derivatives related to the company`s debt securities issued are carried at fair value through profit or loss, and recognised gross per contract, as either asset or debt.

CLASSIFICATION OF FINANCIAL INSTRUMENTSFinancial instruments at fair value through profit or lossFinancial assets and liabilities carried at amortised cost
 31.03.201631.03.201531.03.201631.03.2015
Loans to and receivables from credit institutions  242569
Loans to and receivables from customers  18 02315 772
Certificates and bonds339208  
Financial derivatives545391  
Total assets88459918 26516 341
Loans from credit institutions  1 9421 164
Debt securities issued  15 76514 483
Financial derivatives524  
Total liabilities52417 70715 647
FAIR VALUE OF FINANCIAL INSTRUMENTS AT AMORTISED COST31.03.201631.03.2015
 Fair valueBook valueFair valueBook value
Loans to and receivables from credit institutions242242569569
Loans to and receivables from customers18 02318 02315 77215 772
Total assets18 26518 26516 34116 341
Loans from credit institutions1 9421 9421 1641 164
Debt securities issued15 66715 76514 58014 483
Total liabilities17 60917 70715 74415 647
FINANCIAL INSTRUMENTS AT AMORTISED COSTBased on prices in an active marketObservable market informationOther than observable market information 
31.03.2016Level 1Level 2Level 3Total
Loans to and receivables from credit institutions-242-242
Loans to and receivables from customers--18 02318 023
Total assets-24218 02318 265
Loans from credit institutions-1 942-1 942
Debt securities issued-15 667-15 667
Total liabilities-17 609-17 609
     
     
FINANCIAL INSTRUMENTS AT AMORTISED COSTBased on prices in an active marketObservable market informationOther than observable market information 
31.03.2015Level 1Level 2Level 3Total
Loans to and receivables from credit institutions-569-569
Loans to and receivables from customers--15 77215 772
Total assets-56915 77216 341
Loans from credit institutions-1 164-1 164
Debt securities issued-14 580-14 580
Total liabilities-15 744-15 744
     
     
FINANCIAL INSTRUMENTS AT FAIR VALUEBased on prices in an active marketObservable market informationOther than observable market information 
31.03.2016Level 1Level 2Level 3Total
Certificates and bonds-339-339
Financial derivatives-545-545
Total assets-884-884
Financial derivatives-5-5
Total liabilities-5-5
     
     
FINANCIAL INSTRUMENTS AT FAIR VALUEBased on prices in an active marketObservable market informationOther than observable market information 
31.03.2015Level 1Level 2Level 3Total
Certificates and bonds-208-208
Financial derivatives-391-391
Total assets-599-599
Financial derivatives-24-24
Total liabilities-24-24