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About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
The potential effect before taxation, if more favorable reasonable
assumptions are used for the valuation of the financial
instruments in level 3 on the income statement, is EUR 145 million
(2017: EUR 70 million) and on other comprehensive income
EUR 9 million (2017: EUR 16 million). The potential effect before
taxation, if more unfavorable reasonable assumptions are used for
the valuation of financial instruments in level 3 on the income
statement, is EUR -142 million (2017: EUR -64 million) and on
other comprehensive income EUR -7 million (2017:
EUR -16 million).
Level 3 of the financial assets at fair value include private equity
interests and the loan portfolio of ACC. The latter since the
adoption of IFRS 9 per January 1, 2018. Total amount of these
level 3 financial assets at fair value is EUR 1,245 million (2017:
EUR 525 million). A significant unobservable input for the
valuation of the private equity interests is the multiplier which is
applied to the EBITDA. The average weighted multiplier is 6.4,
with a bandwidth of-1 (unfavorable) and +1 (favorable) ofthe
multiplier. Significant unobservable in puts for the valuation ofthe
ACC loan portfolio are the valuation of collateral and the appetite
to buy this type of assets reflected in a range of plus (best case)
of EUR 62 million or minus (worst case) of EUR 48 million.
The table shows movements in the financial instruments which
are stated at fair value in the statement of financial position and
which are classified in Level 3. The fair value adjustments in Level
3 which are included in equity are accounted for in the revaluation
reserves for financial assets at fair value through comprehensive
income.
In 2018 there were no significant transfers between level 1 and
level 2.
Amounts in millions of euros
Assets
Financial assets held for trading
Financial assets designated at
fair value
Financial assets mandatorily at
fair value
Derivatives
Financial assets at fair value
through other comprehensive
income
Fair value Fair value
Balance on changes changes
January 1,2018 incorporated in incorporated in
profit or loss OCI
68
23
1,668
315
471
6
1
54
(18)
10
19
Purchases
162
82
20
Sales
Settlements
Transfers to or
from level 3
Balance on
December 31,
2018
(11)
(16)
(117) (224)
(123)
(56)
20 1,563
256
464
Liabilities
Derivatives
Financial liabilities designated at
fair value
259
6
(10)
1
(2)
(127)
123
(4)
Amounts in millions of euros
Balance on
January 1,
2017
Fair value
changes
incorporated
in profit or loss
Fair value
changes
incorporated
in OCI
Purchases
Sales
Settlements
Transfers to
held for sale
assets
Transfers to or
from level 3
Balance on
December 31,
2017
Assets
Financial assets held for trading
89
(3)
(23)
63
Financial assets designated at fair
value
514
42
138
(98)
(74)
522
Derivatives
535
50
(331)
61
315
Available-for-sale financial assets
540
(22)
31
13
(30)
532
Liabilities
Derivatives
524
46
(318)
7
259
Financial liabilities designated at
fair value
13
(1)
(3)
(3)
44
50
The amount in total gains or losses recognized in the income
statement for the period relating to the assets and liabilities held
in Level 3 until the end ofthe reporting period is given in the
following table.
Annual Report2018-Consolidated Financial Statements
168
