Daimler Annual Report 2011 - Alle jaarverslagen

7 | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
Other receivables and assets are carried at amortized cost.
Because of the predominantly short maturities of these
financial instruments, it is assumed that the fair values
approximate the carrying amounts.
Financing liabilities. The fair values of bonds, loans, commercial
papers, deposits in the direct banking business and liabilities
from ABS transactions are calculated as the present values of
the estimated future cash flows. Market interest rates for the
appropriate terms are used for discounting.
Trade payables. Due to the short maturities of these
financial instruments, it is assumed that their fair values
are equal to the carrying amounts.
Other financial liabilities. Financial liabilities recognized
at fair value through profit or loss comprise derivative financial
instruments not used in hedge accounting. For information
regarding these financial instruments as well as derivative financial
instruments used in hedge accounting see the notes
above under “Marketable debt securities and other financial
assets.”
Miscellaneous other financial liabilities are carried at amortized
cost. Because of the predominantly short maturities of
these financial instruments, it is assumed that the fair values
approximate the carrying amounts.
Table 7.69 provides an overview of the classification
of financial assets and liabilities measured at fair value in
the fair value hierarchy (according to IFRS 7).
Parameters with a significant influence on the measurement
of the option are the value of Engine Holding as determined with
the use of a discounted cash flow method and the expected
volatility of that value. A sensitivity analysis shows that a 10%
increase in the value of Engine Holding would lead to a reduction
in the value of the option of €35 million. On the other hand,
a 10% decrease in the value of Engine Holding would increase
the value of the option by €46 million. A 10% increase in the
expected volatility of the value of Engine Holding would
lead to an increase in the value of the option of €43 million.
However, a 10% decrease in the expected volatility of the
value of Engine Holding would reduce the value of the option
by €38 million.
7.70
Development of financial assets recognized
at fair value through profit or loss classified as level 3
In millions of euros
Balance at December 31, 2010 –
Gains recognized in other financial income/expense, net 6
Purchases 171
Balance at December 31, 2011 177
Gains for 2011 relating to financial assets held
at December 31, 2011 6
The development of financial assets recognized at fair
value through profit or loss and classified as level 3 can
be seen in table 7.70.
The financial assets shown as classified as level 3 and
presented in the table 7.70 consist solely of Daimler’s
option to sell the shares it holds in Engine Holding to
Rolls-Royce (see also Note 13).
231