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
 30.09.201630.09.201530.09.201630.09.2015
Loans to and receivables from credit institutions  201 074
Loans to and receivables from customers  18 00516 940
Certificates and bonds373404  
Financial derivatives419505  
Total assets79290918 02518 014
Loans from credit institutions  1 4981 460
Debt securities issued  15 80516 112
Financial derivatives412  
Total liabilities41217 30317 572
FAIR VALUE OF FINANCIAL INSTRUMENTS AT AMORTISED COST30.09.201630.09.2015
 Fair valueBook valueFair valueBook value
Loans to and receivables from credit institutions20201 0741 074
Loans to and receivables from customers18 00518 00516 94016 940
Total assets18 02518 02518 01418 014
Loans from credit institutions1 4981 4981 4601 460
Debt securities issued15 80715 80516 04616 112
Total liabilities17 30517 30317 50617 572
FINANCIAL INSTRUMENTS AT AMORTISED COST - 30.09.2016Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Loans to and receivables from credit institutions-20-20
Loans to and receivables from customers--18 00518 005
Total assets-2018 00518 025
Loans from credit institutions-1 498-1 498
Debt securities issued-15 807-15 807
Total liabilities-17 305-17 305
     
     
FINANCIAL INSTRUMENTS AT AMORTISED COST - 30.09.2015Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Loans to and receivables from credit institutions-1 074-1 074
Loans to and receivables from customers--16 94016 940
Total assets-1 07416 94018 014
Loans from credit institutions-1 460-1 460
Debt securities issued-16 046-16 046
Total liabilities-17 506-17 506
     
     
FINANCIAL INSTRUMENTS AT FAIR VALUE - 30.09.2016Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Certificates and bonds-373-373
Financial derivatives-419-419
Total assets-792-792
Financial derivatives-4-4
Total liabilities-4-4
     
     
FINANCIAL INSTRUMENTS AT FAIR VALUE - 30.09.2015Based on prices in an active marketObservable market informationOther than observable market information 
 Level 1Level 2Level 3Total
Certificates and bonds-404-404
Financial derivatives-505-505
Total assets-909-909
Financial derivatives-12-12
Total liabilities-12-12