Siemens 2007 Annual Report Download - page 287

Notes to Consolidated Financial Statements 287
(in millions of €, except where otherwise stated and per share amounts)
Notes to Consolidated Financial Statements
The following table presents the fair values and carrying amounts of fi nancial
assets and liabilities measured at cost or amortized cost:
The fair values of cash and cash equivalents, current receivables, trade pay-
ables, other current fi nancial liabilities and commercial paper and borrowings
under revolving credit facilities approximate their carrying amount largely due to
the short-term maturities of these instruments.
Long-term fi xed-rate and variable-rate receivables, including receivables from
fi nance leases, are evaluated by the Company based on parameters such as inter-
est rates, specifi c country risk factors, individual creditworthiness of the cus-
tomer and the risk characteristics of the fi nanced project. Based on this evalua-
tion, allowances are taken to account for the expected losses of these receivables.
As of September 30, 2007 and 2006, the carrying amounts of such receivables, net
of allowances, approximate their fair values.
The fair value of quoted notes and bonds is based on price quotations at the
balance sheet date. The fair value of unquoted notes and bonds, loans from banks
and other fi nancial indebtedness, obligations under fi nance leases as well as other
non-current fi nancial liabilities is estimated by discounting future cash fl ows
using rates currently available for debt of similar terms and remaining maturi-
ties.
September 30, 2007 September 30, 2006
Fair value
Carrying
amount Fair value
Carrying
amount
Financial assets measured at cost or amortized cost
Cash and cash equivalents 4,005 4,005 10,214 10,214
Available-for-sale fi nancial assets* – 655 – 710
Trade and other receivables 18,163 18,163 18,428 18,428
Other non-derivative fi nancial assets 3,265 3,265 2,632 2,632
Financial liabilities measured at cost or amortized cost
Trade payables 8,431 8,431 8,497 8,497
Notes and bonds 8,897 8,889 13,238 13,157
Loans from banks and other fi nancial indebtedness 6,287 6,322 1,831 1,823
Obligations under fi nance leases 277 286 317 317
Other non-derivative fi nancial liabilities 1,998 1,998 746 746
* This caption consists of equity instruments classifi ed as available-for-sale, for which a fair value could not be
reliably measured and which are recognized at cost.