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
 30.06.201630.06.201530.06.201630.06.2015
Loans to and receivables from credit institutions  226222
Loans to and receivables from customers  18 13716 030
Certificates and bonds371207  
Financial derivatives546343  
Total assets91755018 36316 252
Loans from credit institutions  1 8891 263
Debt securities issued  15 93114 205
Financial derivatives451  
Total liabilities45117 82015 468
FAIR VALUE OF FINANCIAL INSTRUMENTS AT AMORTISED COST30.06.201630.06.2015
 Fair valueBook valueFair valueBook value
Loans to and receivables from credit institutions226226222222
Loans to and receivables from customers18 13718 13716 03016 030
Total assets18 36318 36316 25216 252
Loans from credit institutions1 8891 8891 2631 263
Debt securities issued15 87515 93114 28914 205
Total liabilities17 76417 82015 55215 468
FINANCIAL INSTRUMENTS AT AMORTISED COST - 30.06.2016Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Loans to and receivables from credit institutions-226-226
Loans to and receivables from customers--18 13718 137
Total assets-22618 13718 363
Loans from credit institutions-1 889-1 889
Debt securities issued-15 931-15 931
Total liabilities-17 820-17 820
     
     
FINANCIAL INSTRUMENTS AT AMORTISED COST - 30.06.2015Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Loans to and receivables from credit institutions-222-222
Loans to and receivables from customers--16 03016 030
Total assets-22216 03016 252
Loans from credit institutions-1 263-1 263
Debt securities issued-14 205-14 205
Total liabilities-15 468-15 468
     
     
FINANCIAL INSTRUMENTS AT FAIR VALUE - 30.06.2016Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Certificates and bonds-371-371
Financial derivatives-546-546
Total assets-917-917
Financial derivatives-4-4
Total liabilities-4-4
     
     
FINANCIAL INSTRUMENTS AT FAIR VALUE - 30.06.2015Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Certificates and bonds-207-207
Financial derivatives-343-343
Total assets-550-550
Financial derivatives-51-51
Total liabilities-51-51