Siemens 2008 Annual Report Download - page 286

190 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
In determining the fair values of the derivative nancial instruments, certain compensating effects from under-
lying transactions (e.g. rm commitments and anticipated transactions) are not taken into consideration.
Net gains (losses) of nancial instruments are as follows:
Net (losses) on available-for-sale nancial assets include impairment losses, gains or losses on derecognition
and the ineffective portion of fair value hedges. For the amount of unrealized gains or losses on available-for-
sale nancial assets recognized directly in equity during the scal year and the amount removed from equity
and recognized in net income for the scal year see Other components of equity in Note 27.
Net (losses) on loans and receivables contain changes in valuation allowances, gains or losses on derecognition
as well as recoveries of amounts previously written-off.
Net gains on nancial liabilities measured at amortized cost are comprised of gains or losses from derecognition
and the ineffective portion of fair value hedges.
Net gains on nancial assets and nancial liabilities held for trading consist of changes in the fair value of deriv-
ative nancial instruments (including interest income and expense), for which hedge accounting is not applied.
Collateral
Siemens holds securities as collateral on reverse repurchase agreements and is permitted to sell or re-pledge
these securities. As of September 30, 2008 and 2007 the fair value of the collateral held amounted to €251 mil-
lion and €251 million, respectively. As of September 30, 2008, the right to sell or re-pledge the collateral has not
been exercised. The Company did not pledge any nancial or non-nancial assets as collateral during the scal
year 2008.
32 Derivative financial instruments and hedging activities
As part of the Company’s risk management program, a variety of derivative nancial instruments are used to
reduce risks resulting primarily from uctuations in foreign currency exchange rates and interest rates, as well
as to reduce credit risks. For additional information on the Company’s risk management strategies, including
the use of derivative nancial instruments to mitigate or eliminate certain of these risks, see also Note 33.
September 30,
2008 2007
Loans and receivables (284) (158)
Financial assets and nancial liabilities held for trading 63 60
Financial liabilities measured at amortized cost 11 57
Available-for-sale nancial assets (1) (66)