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Financial information<br />
Notes to the consolidated financial statements continued<br />
for the year ended 31 December <strong>2011</strong><br />
(all amounts are presented in thousands of Russian Roubles, unless otherwise stated)<br />
33 Fair value of financial instruments continued<br />
Financial assets carried at amortised cost. The fair value of floating rate instruments is normally their carrying amount. The estimated fair value of fixed<br />
interest rate instruments is based on estimated future cash flows expected to be received discounted at current interest rates for new instruments with similar<br />
credit risk and remaining maturity. The discount rates used depend on the credit risk of the counterparty. The carrying amounts of trade receivables approximate<br />
their fair values.<br />
Liabilities carried at amortised cost. The fair value is based on quoted market prices, if available. The estimated fair values of fixed interest rate instruments<br />
with a stated maturity, for which quoted market prices were not available, were estimated based on expected cash flows discounted at current interest rates for<br />
new instruments with similar credit risks and remaining maturities. The fair value of liabilities repayable on demand or after a notice period (“demandable<br />
liabilities”) is estimated as the amount payable on demand, discounted from the first date that the amount could be required to be paid. At 31 December <strong>2011</strong><br />
and 31 December 2010 the fair value of the current and non-current borrowings is not materially different from their carrying amounts. The fair value of the issued<br />
bonds is disclosed in Note 16.<br />
34 Subsequent events<br />
On 20 January 2012 the Group finalised the acquisition of LLC Severneft-Urengoy (Note 29).<br />
116 EuroChem Annual Report and Accounts <strong>2011</strong>
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