annual report - Hypo Real Estate Holding AG
annual report - Hypo Real Estate Holding AG
annual report - Hypo Real Estate Holding AG
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Group Accounts<br />
b) Loans and advances to banks and customers<br />
Loans and advances are net of provisions for impairment. The estimated fair value of loans and advances represents<br />
the discounted amount of estimated future cash flows expected to be received. Expected cash flows are<br />
discounted at current market rates to determine fair value.<br />
c) Deposits and borrowings<br />
The estimated fair value of deposits with no stated maturity, which includes non interest bearing deposits, is the<br />
amount repayable on demand. The estimated fair value of fixed interest bearing deposits and other borrowings<br />
without a quoted market price is based on discounted cash flows using interest rates for new debts with similar<br />
remaining maturity.<br />
d) Debt securities in issue<br />
The aggregate fair values are calculated based on quoted market prices. For those notes where quoted market<br />
prices are not available, a discounted cash flow model is used based on a current yield curve appropriate for the<br />
remaining term to maturity for a similar credit rating.<br />
46. Gains and losses from fair value adjustments for recognised assets and liabilities<br />
The following table details the gains and losses from fair value adjustments relating to available-for-sale investment<br />
securities, financial assets at fair value through profit or loss, and from hedge accounting:<br />
Group 2007<br />
Financial<br />
Fair value AFS instruments Total fair<br />
hedge investment at fair value value<br />
accounting securities through P&L adjustments<br />
Assets € m € m € m € m<br />
Loans and advances to banks -491 - - -491<br />
Other financial instruments at fair value through profit or loss - - -634 -634<br />
Loans and advances to customers 1,303 - - 1,303<br />
Investment securities – available-for-sale -420 -188 - -608<br />
Total assets 392 -188 -634 -430<br />
Liabilities<br />
Deposits from banks 63 - - 63<br />
Other deposits 5 - - 5<br />
Due to customers -426 - - -426<br />
Debt securities in issue -589 - - -589<br />
Other borrowed funds -27 - - -27<br />
Total liabilities -974 - - -974<br />
Hedging instruments -1,336 - 620 -716<br />
Net equity (pre-tax) 30 -188 -14 -172<br />
180
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