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Unformatted text preview: ed within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Inputs for assets or liabilities that are not based on observable market data (unobservable inputs). The table below includes analyses of financial instruments by their fair value hierarchy levels into which the fair value measurement is categorised. interest-bearing liabilities Fair values of interest-bearing liabilities have been calculated using yield curves, which incorporates estimates of the Telenor ASA credit spread. The credit curve has been extrapolated using indicative prices on debt issuance by Telenor ASA for different maturities. The yield curves have been interpolated from cash and swap curves observed in the market for different currencies and maturities. Trade receivables and other current and non-current financial assets For trade receivables and other current receivables, the nominal amount is assessed to be a reasonable approximation of fair value. The effect of not discounting is considered to be immaterial for this class of financial instruments. Trade payables and other non-interest bearing financial liabilities For trade payables and other non-interest bearing financial liabilities the nominal amount is assessed to be a reasonable approximation of fair value. The effect of not discounting is considered to be immaterial for this class of financial instruments. Equity securities Fair values for listed shares are based on quoted prices at the end of the reporting period. Fair value of unlisted shares is calculated using commonly used valuation techniques, or measured at cost if the investment does not have a quoted market price in an active market and the fair value cannot be reliably measured. Cash and cash equivalents The fair value for this class of financial instruments is assessed to be equal to the nominal amount. derivatives Fair values of currency swaps, foreign currency forward contracts and interest rate swaps are estimated based on calculating the net present value of future cash flows, using swap curves and exchange rates as of 31 December 2011 and 2010, respectively. The fair values of options are estimated using appropriate option pricing models. /PAGE 99/ TELENOR ANNuAL REPORT 2011 notes to the financial statements / Telenor ASA NOK in millions Financial position item Note Non-current interest-bearing receivables on group companies 1) 10 Other non-current financial assets External counterparties Telenor Group counterparties External counterparties Trade receivables on group companies Trade receivables external Other current financial assets 10 External counterparties Telenor Group counterparties External counterparties Telenor Group counterparties External counterparties Liquid assets and short-term placements 2) Total – Fair value through profit and loss (FVTPL) Total – Available for sale (AFS) Total – Loans and receivables (LAR) Non-current interest-bearing external liabilities 3) Non-current non-interest-bearing liabilities within the Group Non-current non-interestbearing external liabilities Current interest-bearing liabilities within the Group 1) Current interest-bearing external liabilities 3) Drawings from cash pool 2) Current non-interest-bearing liabilities within the Group 13 Current non-interest-bearing external liabilities 13 Fair value level 2 3 2 2 Category Carrying amount Fair value 91 036 91 036 1 324 FVTPl 1 182 AFs 120 lAR 22 380 lAR 380 3 lAR 3 4 089 FVTPl 216 FVTPl 6 1 898 lAR 1 967 lAR NF 4) 3 2 885 lAR 2 885 1 403 120 98 190 91 036 91 036 1 324 1 182 120 22 380 380 3 3 4 089 216 6 1 898 1 967 3 2 885 2 885 1 403 120 98 190 lAR Fair values of financial instruments 31 december 2011 per class Trade payables and other Trade non Currency receivables interest Cash swaps interest and other bearing and cash and bearing financial financial Equity equi forward liabilities assets liabilities securities valents contracts interest rate swaps and options - 91 036 - - - - - - - - - - 22 - - - - 120 - - - - 5 - - 1 177 - - 380 - - - - - - 3 - - - - - - - - - - - - 1 898 1 967 - - - - - - - - - - - - - - - - 216 6 - - - - - - - - 2 885 - - - - - - - - (19 771) (18 912) FlAC (19 771) (18 912) (18 912) FVTPl FlAC (186) (152) (34) (186) (152) (34) - (34) - - - - - - - - (152) - - 2 FVTPl (481) (481) (481) (481) - - - - - (427) (54) - - - - - - - - - - - - - - - - - - (76 271) FlAC (76 271) (1 569) FlAC (1 569) (6 115) FlAC (6 115) 2 FVTPl FlAC 2 FVTPl FlAC NF 4) (186) (73) (113) (76 271) (76 271) (76 271) (1 569) (1 569) (1 569) (6 115) (6 115) (6 115) (186) (73) (113) (2 905) (2 905) (605) (605) (723) (723) (1 577) (1 577) - - - - - (113) - - - - (73) - - - - - (102 900) - - - 95 305 - (723) - (836) - - - 120 - - - 2 885 (605) - - (1 031) 1 123 Total – Fair value through profit and loss (FVTPL) (1 311) (1 311) Total – Financial liabilities at amortised cost (FLAC) (104 596) (103 736) 1) Non current interest bearing receivables group companies consist entirely of loans from Telenor AsA’s internal bank (Group Treasury) to subsidiaries. Current interest bearing liabilities Group consist entirely of deposit in the internal bank of Telenor AsA from subsidiaries. 2) The Group has established cash pool systems with three banks. under these agreements, Telenor AsA is the Group account holder...
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