Annual Financial Statements 2011 of Bank Austria

Consolidated Financial Statements in accordance with IFRSs
A – Accounting policies (CoNTINuED)
Level 3 comprises assets or liabilities whose fair values are determined on the basis of significant non-observable inputs. An input qualifies as an
observable input if it is directly observable as a market price or may be derived from an observable price. Examples of Level 3 inputs are historical
volatility or interest rates for currencies and maturities for which there are no observable financial instruments.
If the value of a financial instrument is based on non-observable inputs, the value of these inputs at the end of the reporting period may be selected
from a range of reasonable possible alternatives. For the purpose of preparing the financial statements, the reasonable values selected for such nonobservable
inputs are in line with prevailing market conditions and the Group’s valuation verification approach.
The following tables show a breakdown of financial assets and liabilities designated at fair value according to the above-mentioned levels, as well as
the annual changes of Level 3 assets or liabilities.
Breakdown by fair value levels (€ m)
fiNaNcial assets/liabilities measured at fair Value 31 dec. 2011 31 dec. 2010
leVel 1 leVel 2 leVel 3 leVel 1 leVel 2 leVel 3
Financial assets held for trading 308 2,924 90 626 3,625 54
Financial assets at fair value through profit or loss 26 45 143 27 73 204
Available-for-sale financial assets 5,540 6,979 2,158 4,908 10,654 1,982
Hedging derivative assets – 3,466 – – 2,448 1
tOtal 5,874 13,414 2,391 5,560 16,800 2,240
Financial liabilities held for trading 51 2,493 10 27 2,355 65
Financial liabilities at fair value through profit or loss – 1,042 – – 1,651 –
Hedging derivative liabilities – 2,591 – – 2,883 25
tOtal 27 6,890 91 27 6,890 91
Annual changes in financial assets at fair value level 3 (€ m)
2011
fiNaNcial assets
at fair Value
thrOugh
held fOr tradiNg prOfit Or lOss aVailable fOr sale hedgiNg deriVatiVes
Opening balances 54 204 1,982 1
increases 124 13 1,144 –
Purchases 112 – 656 –
Profits recognised in:
Income statement 12 10 – –
of which unrealised gains 6 9 – –
Equity x x 293 –
Transfers from other levels – 1 2 –
Other increases – 2 193 –
decreases –87 –75 – 967 –1
Sales –61 –10 –365 –
Redemptions –5 –43 –408 –
Losses recognised in:
Income statement –1 –2 –85 –
of which unrealised losses –1 – –14 –
Equity x x –71 –
Transfers to other levels –3 –17 – –1
Other decreases –17 –2 –38 –
closing balance 90 143 2,158 0
Bank Austria · Annual Financial Statements 2011
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