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
 30.06.201730.06.201630.06.201730.06.2016
Loans to and receivables from credit institutions  152226
Loans to and receivables from customers  20 53518 137
Certificates and bonds168371  
Financial derivatives460546  
Total assets62891720 68718 363
Loans from credit institutions  1 1071 889
Debt securities issued  18 61515 931
Financial derivatives74  
Total liabilities7419 72217 820
FAIR VALUE OF FINANCIAL INSTRUMENTS AT AMORTISED COST30.06.201730.06.2016
 Fair valueBook valueFair valueBook value
Loans to and receivables from credit institutions152152226226
Loans to and receivables from customers20 53520 53518 13718 137
Total assets20 68720 68718 36318 363
Loans from credit institutions1 1071 1071 8891 889
Debt securities issued18 68018 61515 87515 931
Total liabilities19 78719 72217 76417 820
FINANCIAL INSTRUMENTS AT AMORTISED COST - 30.06.2017Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Loans to and receivables from credit institutions-152-152
Loans to and receivables from customers--20 53520 535
Total assets-15220 53520 687
Loans from credit institutions-1 107-1 107
Debt securities issued-18 680-18 680
Total liabilities-19 787-19 787
     
     
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-15 875-15 875
Total liabilities-17 764-17 764
     
     
FINANCIAL INSTRUMENTS AT FAIR VALUE - 30.06.2017Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Certificates and bonds-168-168
Financial derivatives-460-460
Total assets-628-628
Financial derivatives-7-7
Total liabilities-7-7
     
     
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