Siemens 2010 Annual Report Download - page 280

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis
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The following table presents the fair values and carrying
amounts of financial assets and financial liabilities measured
at cost or amortized cost:
The fair values of cash and cash equivalents, current receiv-
ables, trade payables, other current financial liabilities, com-
mercial paper and borrowings under revolving credit facilities
approximate their carrying amount largely due to the short-
term maturities of these instruments.
Long-term fixed-rate and variable-rate receivables, including
receivables from finance leases, are evaluated by the Company
based on parameters such as interest rates, specific country
risk factors, individual creditworthiness of the customer, and
the risk characteristics of the financed project. Based on this
evaluation, allowances for these receivables are taken into ac-
count. As of September ,  and , 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 period-end date. The fair value of unquoted
notes and bonds, loans from banks and other financial indebt-
edness, obligations under finance leases as well as other non-
current financial liabilities is estimated by discounting future
cash flows using rates currently available for debt of similar
terms and remaining maturities.
September ,  September , 
Fair value Carrying
amount
Fair value Carrying
amount
Financial assets measured at cost or amortized cost
Trade and other receivables  14,111 14,111 13,951 13,951
Receivables from finance leases 4,879 4,879 4,885 4,885
Cash and cash equivalents 14,108 14,108 10,159 10,159
Other non-derivative financial assets 5,759 5,759 5,283 5,283
Available-for-sale financial assets  – 410 – 335
Financial liabilities measured at cost or amortized cost
Notes and bonds 17,343 17,300 16,373 16,502
Trade payables 7,899 7,899 7,617 7,617
Loans from banks and other financial indebtedness 2,439 2,442 2,941 2,942
Obligations under finance leases 169 171 191 194
Other non-derivative financial liabilities 1,110 1,110 1,284 1,284
1 This caption consists of (i) €13,186 and €12,711 short-term trade receivables (except for receivables from finance leases) in fiscal 2010 and fiscal 2009, respectively, see Note 12,
(ii) €531 and €453 trade receivables from sale of goods and services (non current) in fiscal 2010 and fiscal 2009, respectively, see Note 20 as well as (iii) €394 and €787 receivables
included in Other financial assets in fiscal 2010 and fiscal 2009, respectively, see Note 20.
2 This caption consists of equity instruments classified as available-for-sale, for which a fair value could not be reliably measured and which are recognized at cost.