Siemens 2008 Annual Report Download - page 284

188 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
The following table presents the fair values and carrying amounts of nancial assets and liabilities measured
at cost or amortized cost:
The fair values of cash and cash equivalents, current receivables, trade payables, other current nancial liabili-
ties 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 xed-rate and variable-rate receivables, including receivables from nance leases, are evaluated by
the Company based on parameters such as interest rates, specic country risk factors, individual creditworthi-
ness of the customer and the risk characteristics of the nanced project. Based on this evaluation, allowances
are taken to account for the expected losses of these receivables. As of September 30, 2008 and 2007, the carry-
ing 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 nancial indebtedness, obligations under nance leases
as well as other non-current nancial liabilities is estimated by discounting future cash ows using rates cur-
rently available for debt of similar terms and remaining maturities.
September 30, 2008 September 30, 2007
Fair value
Carrying
amount Fair value
Carrying
amount
Financial assets measured at cost or amortized cost
Trade and other receivables* 19,787 19,787 18,163 18,163
Cash and cash equivalents 6,893 6,893 4,005 4,005
Other non-derivative nancial assets 5,351 5,351 3,265 3,265
Available-for-sale nancial assets** – 518 – 655
Financial liabilities measured at cost or amortized cost
Notes and bonds 12,069 12,966 8,897 8,889
Trade payables 8,886 8,886 8,431 8,431
Loans from banks and other nancial indebtedness 2,820 2,879 6,287 6,322
Obligations under nance leases 228 233 277 286
Other non-derivative nancial liabilities 1,373 1,373 1,998 1,998
* This caption consists of (i) short-term trade and other receivables (see Note 12), as well as (ii) trade receivables from sale of goods and
services, receivables from nance leases and receivables from associated and not consolidated related Companies which are included in
other nancial assets (see Note 20).
** This caption consists of equity instruments classied as available-for-sale, for which a fair value could not be reliably measured and which
are recognized at cost.