Siemens 2012 Annual Report Download - page 288

1 A. To our Shareholders 49 C. Combined Management Report 21 B. Corporate Governance
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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:
Cash and cash equivalents includes € million and € mil-
lion as of September ,  and , respectively, which are
not available for use by Siemens mainly due to minimum re-
serve requirements with banks.
The fair values of cash and cash equivalents, trade and other
receivables and trade payables with a remaining term of up to
twelve months, other current financial liabilities and borrow-
ings under revolving credit facilities approximate their carry-
ing amount, mainly due to the short-term maturities of these
instruments.
Fixed-rate and variable-rate receivables with a remaining term
of more than twelve months, 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 account. 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
(in millions of €)
Financial assets measured at cost or amortized cost
Trade and other receivables  13,344 13,344 13,147 13,147
Receivables from finance leases 5,059 5,059 4,742 4,742
Cash and cash equivalents 10,891 10,891 12,468 12,468
Other non-derivative financial assets 10,036 10,036 7,976 7,976
Available-for-sale financial assets  – 293 – 252
Financial liabilities measured at cost or amortized cost
Notes and bonds 18,460 18,212 15,007 15,146
Trade payables  8,036 8,036 7,677 7,677
Loans from banks and other financial indebtedness 2,340 2,334 2,680 2,649
Obligation under finance leases 202 161 194 145
Other non-derivative financial liabilities 1,418 1,418 1,466 1,466
1 Consists of () €, million and €, million trade receivables from the sale of
goods and services in fiscal  and , respectively, as well as () € million and
€ million receivables included in line item Other financial assets in fiscal  and
, respectively. As of September ,  and , trade receivables from the sale
of goods and services of € million and € million have a remaining term of more
than twelve months.
2 Consists of equity instruments classified as available-for-sale, for which a fair value
could not be reliably measured and which are therefore recognized at cost.
3 As of September ,  and , trade payables of € million and € million
have a remaining term of more than twelve months.