Note 4

Financial instruments

All lending and receivables are recorded at amortised cost. Amortised cost is also used for fixed and 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
 31.03.201731.03.201631.03.201731.03.2016
Loans to and receivables from credit institutions  309242
Loans to and receivables from customers  18 53418 023
Certificates and bonds343339  
Financial derivatives386546  
Total assets72988518 84318 265
Loans from credit institutions  1 0841 942
Debt securities issued  16 90615 765
Financial derivatives125  
Total liabilities12517 99017 707
FAIR VALUE OF FINANCIAL INSTRUMENTS AT AMORTISED COST31.03.201731.03.2016
 Fair valueBook valueFair valueBook value
Loans to and receivables from credit institutions309309242242
Loans to and receivables from customers18 53418 53418 02318 023
Total assets18 84318 84318 26518 265
Loans from credit institutions1 0841 0841 9421 942
Debt securities issued16 94616 90615 66715 765
Total liabilities18 03017 99017 60917 707
FINANCIAL INSTRUMENTS AT AMORTISED COST - 31.03.2017Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Loans to and receivables from credit institutions-309-309
Loans to and receivables from customers--18 53418 534
Total assets-30918 53418 843
Loans from credit institutions-1 084-1 084
Debt securities issued-16 946-16 946
Total liabilities-18 030-18 030
     
     
FINANCIAL INSTRUMENTS AT AMORTISED COST - 31.03.2016Based on prices in an active marketObservable market informationOther than observable market information 
 Level 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 FAIR VALUE - 31.03.2017Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Certificates and bonds-343-343
Financial derivatives-386-386
Total assets-729-729
Financial derivatives-12-12
Total liabilities-12-12
     
     
FINANCIAL INSTRUMENTS AT FAIR VALUE - 31.03.2016Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Certificates and bonds-339-339
Financial derivatives-546-546
Total assets-885-885
Financial derivatives-5-5
Total liabilities-5-5