BMW 2009 Annual Report Download - page 126

124
74 Group Financial Statements
74 Income Statements
74 Statement of
Comprehensive Income
76 Balance Sheets
78 Cash Flow Statements
80 Group Statement of Changes
in Equity
81 Notes
81 Accounting Principles
and Policies
90 Notes to the Income
Statement
97
Notes to the Statement
of Comprehensive Income
98 Notes to the Balance Sheet
119 Other Disclosures
133 Segment Information
ISO-Code EUR USD GBP JPY
in %
Interest rate for six months 0.5 0.3 0.6 0.5
Interest rate for one year 0.9 0.6 0.9 0.7
Interest rate for five years 2.9 3.1 3.5 0.7
Interest rate for ten years 3.7 4.2 4.3 1.5
Fair value measurement of financial instruments
The fair values shown are computed using market informa-
tion available at the end of the reporting period on the ba-
sis of prices quoted by the counterparties or using appro-
priate measurement methods, e. g. discounted cash flow
models. In the latter case, amounts were discounted at
31 December 2009 on the basis of the following interest
rates:
Interest rates taken from interest rate structure curves
were adjusted, where necessary, to take account of the credit
quality and risk of the underlying financial instrument.
Derivative financial instruments are measured at their fair
value. The fair values of derivative financial instruments are
determined using measurement models, as a consequence
of which there is a risk that the amounts calculated on the
basis of those models could differ from realisable market
prices on disposal. Market price spreads (for liquidity and
credit risks for instance) remain wide as a result of the finan-
cial
market crisis, therefore also affecting the measureme nt
of derivatives.
Financial instruments measured at fair value are allocated
to different measurement levels in accordance with IFRS 7.
This includes financial instruments that are
1 measured at their fair values in an active market for iden-
tical financial instruments (level 1),
2 measured at their fair values in an active market for com-
parable financial instruments or using measurement
models whose main input factors are based on observ-
able
market data (level 2) or
3 using input factors not based on observable market data
(level 3).
The following table shows the mounts allocated to each
measurement level at 31 December 2009:
Other investments (available-for-sale) amounting to
euro 232 million are measured at amortised cost since
quoted market prices are not available or cannot be
determined reliably. These are therefore not included
in the level hierarchy shown above.
There were no significant reclassifications within the level
hierarchy during the financial year 2009.
in euro million Level hierarchy in accordance with IFRS 7
Level 1 Level 2 Level 3
Marketable securities and investment fund shares – available-for-sale 543 1,105 –
Derivatives (assets) – held for trading – 734 –
Derivatives (liabilities) – held for trading 1 489 –