26. Fair values of financial assets and liabilities
The fair value determination principles applied by the Group on all financial instruments
When determining the fair values of the financial assets and liabilities, the following price quotations, assumptions and measurement models have been used.
Available-for-sale financial assets
Unlisted investments in shares were measured at acquisition cost because it was not possible to measure them at fair value using the methods of measurement or their amount was low.
The fair values of currency forward contracts are determined by using the market prices for contracts of equal duration at the reporting date. The fair values of interest rate swaps are determined using the net present value method supported by the market interest rate or other market information at the reporting date. If the market value given by a counterparty is used, the Group also produces its own calculation using generally accepted valuation methods. The fair values of commodity derivatives are determined by using publicly quoted market prices. The fair values are equal to the prices which the Group would have to pay or would obtain if it were to terminate a derivative instrument.
The fair values of liabilities are based on the discounted cash flows. The rate used for measurement is the rate at which the Group could obtain corresponding credit from a third party on the reporting date. The overall rate consists of a risk free rate and a risk premium (margin on loan) for the company.
Finance lease liabilities
The fair value is measured by discounting future cash flows by an interest rate which corresponds to the interest rate of future leases.
Trade and other receivables
The original carrying amounts of non-derivative based receivables are equal to their fair values, as discounting has no material effect taking into account the maturity of the receivables.
Trade and other payables
The original carrying amounts of trade and other payables are equal to their fair values, as discounting has no material effect taking into account the maturity of the payables.
Fair value hierarchy for financial assets and liabilities measured at fair value. Fair values at end of reporting period.