Siemens 2010 Annual Report Download - page 282

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis

The following table allocates financial assets and financial lia-
bilities measured at fair value to the three levels of the fair
value hierarchy, as defined in IFRS .
September , 
Level  Level  Level  Total
Financial assets
measured at fair value
Available-for-sale financial assets 322 – – 322
Derivative financial instruments – 3,642 – 3,642
Total 322 3,642 – 3,964
Financial liabilities
measured at fair value
Derivative financial instruments – 1,262 – 1,262
September , 
Level  Level  Level  Total
Financial assets
measured at fair value
Available-for-sale financial assets 226 – – 226
Derivative financial instruments – 2,871 – 2,871
Total 226 2,871 – 3,097
Financial liabilities
measured at fair value
Derivative financial instruments – 998 – 998
The levels of the fair value hierarchy and its application to our
financial assets and financial liabilities are described below:
Level : quoted prices in active markets for identical assets or
liabilities;
Level : inputs other than quoted prices that are observable
for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices); and
Level : inputs for the asset or liability that are not based on
observable market data.
Net gains (losses) of financial instruments are as follows:
Year ended
September ,
 
Cash and cash equivalents (34) 7
Available-for-sale financial assets 16 (44)
Loans and receivables (87) (419)
Financial liabilities measured at amortized cost (283) 302
Financial assets and financial liabilities
held for trading (665) 34
Net gains (: losses) on available-for-sale financial 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 fi-
nancial assets recognized directly in equity during the fiscal
year and the amount removed from equity and recognized in
net income for the fiscal year see Other Comprehensive Income
in Note .
Net losses on loans and receivables contain changes in valua-
tion allowances, gains or losses on derecognition as well as
recoveries of amounts previously written-off.
Net losses (: gains) on financial liabilities measured at
amortized cost are comprised of gains or losses from derecog-
nition and the ineffective portion of fair value hedges.
Net losses (: gains) on financial assets and financial liabil-
ities held for trading consist of changes in the fair value of
derivative financial instruments (including interest income
and expense), for which hedge accounting is not applied.
The amounts presented include foreign currency gains and
losses from the realization and valuation of the financial assets
and liabilities mentioned above.
Collateral
Siemens holds securities as collateral on reverse repurchase
agreements and is permitted to sell or re-pledge these securi-
ties. As of September ,  and  the fair value of the
collateral held amounted to €, and €, respectively. As
of September , , the right to sell or re-pledge the col-
lateral has not been exercised. As of September ,  and
, the carrying amount of financial assets Siemens has
pledged as collateral amounted to € and €, respectively.