Hydro Annual Report 2011b

F56
Financial assets, classified as current and non-current, represent the maximum exposure Hydro has towards credit risk as at the
reporting date.
Realized and unrealized gains and losses from financial instruments and contracts accounted for as financial instruments are in
the income statement included in several line items. Below is a reconciliation of the effects from Hydro's financial instruments
in the income statements:
Financial
instruments Derivatives
at fair value identified as Available­for­ Other Non­financial
through profit hedging Loans and sale financial financial assets and
Amounts in NOK million or loss instruments receivables assets liabilities liabilities Total 1)
2011
Income statement line item
Revenue (752) (102) ­ ­ ­ ­ (854)
Raw material and energy expense (238) ­ ­ ­ ­ ­ (238)
Financial income 43 ­ ­ 13 2)
­ ­ 56
Financial expense 18 ­ ­ ­ ­ ­ 18
Gain/loss directly in Other comprehensive income
Recognized directly in Other
comprehensive income (before tax) 411
Removed from Other components of
equity and recognized in the income
statement ­
2010
FINANCIAL STATEMENTS
Note 40 - Financial instruments
Income statement line item
Revenue (308) (11) ­ ­ ­ ­ (319)
Raw material and energy expense 686 ­ ­ ­ ­ ­ 686
Financial income (20) ­ ­ (123) 2)
­ ­ (143)
Financial expense 5 ­ ­ ­ ­ ­ 5
Gain/loss directly in Other comprehensive income
Recognized directly in Other
comprehensive income (before tax) (175)
Removed from Other components of
equity and recognized in the income
statement 90
1) Amount indicates the total gains and losses to financial instruments for each specific income statement line item.
2) Includes dividends, realization of shares, and impairments from equity instruments classified as available-for-sale.
Currency effects, with the exception of currency derivatives, are not included above. Negative amounts indicate a gain.
The following is an overview of fair value measurements categorized on the basis of observability of significant measurement
inputs. Certain items are valued on the basis of quoted prices in active markets for identical assets or liabilities (level 1 inputs),
others are valued on the basis of inputs that are derived from observable prices (level 2 inputs), while certain positions are
valued on the basis of judgmental assumptions that are to a limited degree or not at all based on observable market data (level 3
inputs). The level in this fair value hierarchy within which measurements are categorized is determined on the basis of the
lowest level input that is significant to the fair value measurement.