Philips 2012 Annual Report Download - page 174

12 Group financial statements 12.11 - 12.11
174 Annual Report 2012
December 31, 2011 December 31, 2012
carrying
amount
estimated
fair value
carrying
amount
estimated
fair value
Financial assets
Carried at fair value:
Available-for-sale financial
assets - non-current 139 139 153 153
Available-for-sale financial
assets - current − − − −
Fair value through profit and
loss - non-current 67 67 47 47
Fair value through profit and
loss - current − − − −
Derivative financial
instruments 229 229 137 137
435 435 337 337
Carried at (amortized) cost:
Cash and cash equivalents 3,147 3,147 3,834 3,834
Other current financial assets − − − −
Loans and receivables:
Other non-current loans
and receivables including
guarantee deposits 72 72 267 267
Loans to investments in
associates 2 2 − −
Receivables - current 4,828 4,828 4,585 4,585
Receivables - non-current 127 127 176 176
Held-to-maturity
investments 3 3 3 3
Available-for-sale financial
assets 65 65 79 79
8,244 8,244 8,944 8,944
Financial liabilities
Carried at fair value:
Fair value through profit and
loss - non-current − − (11) (11)
Derivative financial
instruments (744) (744) (517) (517)
Carried at (amortized) cost:
Accounts payable (3,346) (3,346) (2,839) (2,839)
Interest accrual (65) (65) (75) (75)
Debt (3,860) (4,489) (4,534) (5,532)
(7,271) (7,900) (7,448) (8,446)
The table below analyses financial instruments carried at fair value, by
different hierarchy levels:
Fair value hierarchy
level 1 level 2 level 3 total
December 31, 2012
Available-for-sale financial
assets - non-current 110 43 153
Available-for-sale financial
assets - current − −
Financial assets designated at
fair value through profit and
loss - non-current 28 19 47
Financial asses designated at
fair value through profit and
loss - current − −
Derivative financial
instruments - assets 137 137
Total financial assets carried
at fair value 138 137 62 337
Financial liabilities designated
at fair value through profit
and loss - non-current (11) (11)
Derivative financial
instruments - liabilities (517) − (517)
December 31, 2011
Available-for-sale financial
assets - non-current 103 36 139
Available-for-sale financial
assets - current − −
Financial assets designated at
fair value through profit and
loss - non-current 59 8 67
Financial assets designated at
fair value through profit and
loss - current − −
Derivative financial
instruments - assets 229 229
Total financial assets carried
at fair value 162 229 44 435
Derivative financial
instruments - liabilities (744) (744)
Specific valuation techniques used to value financial instruments include:
Level 1
Instruments included in level 1 are comprised primarily of listed equity
investments classified as available-for-sale financial assets, investees and
financial assets designated at fair value through profit and loss.
The fair value of financial instruments traded in active markets is based
on quoted market prices at the balance sheet date. A market is regarded
as active if quoted prices are readily and regularly available from an
exchange, dealer, broker, industry group, pricing service, or regulatory
agency, and those prices represent actual and regularly occurring
market transactions on an arm’s length basis.
Level 2
The fair value of financial instruments that are not traded in an active
market (for example, over-the-counter derivatives or convertible bond
instruments) are determined by using valuation techniques. These
valuation techniques maximize the use of observable market data
where it is available and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument
are based on observable market data, the instrument is included in level
2.