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4.4.3.1. Assets and liabilities measured at fair value<br />
(in thousand of EUR) Level 1 Level 2 Level 3 Total<br />
31 December 2011<br />
Financial assets held for trading<br />
- Debt securities 28,944 - - 28,944<br />
- Equtiy securities 21,009 - 2,768 23,777<br />
- Derivatives<br />
Financial assets designated at fair value<br />
- 12 - 12<br />
- Debt securities<br />
Available-for-sale financial assets<br />
55,032 - - 55,032<br />
- Investment securities - debt 439,158 - - 439,158<br />
- Investment securities - equity 14,441 9,961 38,025 62,427<br />
Total assets 558,584 9,973 40,793 609,350<br />
Financial liabilities at fair value through profit or loss<br />
- Derivatives - 12 - 12<br />
Total liabilities - 12 - 12<br />
31. december 2010<br />
Total assets 607,929 11,611 - 619,540<br />
Total liabilities - 3,033 - 3,033<br />
In 2011, the Bank applied a valuation model (Level 3) to measure the fair value of shares of A<strong>banka</strong><br />
Vipa, d. d., Ljubljana, Pivovarna Laško, d. d., Laško, and Sava, d. d., Kranj. It assessed that these<br />
financial instruments no longer had an active market and that the current cost of these instruments<br />
on the regulated market no longer reflected their actual fair value, their fair value thus being defined<br />
based on the valuation model.<br />
4.4.3.2. Presentation of valuation models<br />
In 2011, the Bank applied valuation models to measure the fair value of three types of shares. The<br />
models were applied with the consent of the Bank's Supervisory Board and submitted for review<br />
to the Bank of Slovenia, which provided no comments concerning the application of these models.<br />
Shares of the bank A<strong>banka</strong> Vipa, d. d., Ljubljana, with the code ABKN<br />
At the end of 2011, the Bank owned 1,061,220 ABKN shares or 14.74-percent equity stake in A<strong>banka</strong><br />
Vipa, d. d., Ljubljana. ABKN shares are traded at the Ljubljana Stock Exchange. Total transactions at<br />
the Stock Exchange stood at EUR 177 thousand at the end of 2011, which accounted for 0.04% of<br />
total transactions and 0.04% of total transactions with shares. The number of transactions was 141<br />
and the total volume of lots was 6,470.<br />
In 2011, the price of ABKN shares fell by 67.0%, from EUR 48.50 to EUR 16.00. The fall was a reflection<br />
of the extremely poor liquidity of the share at the Ljubljana Stock Exchange and the general economic<br />
situation.<br />
The market value of the company's equity was assessed using the method of present value of expected<br />
available cash flows (DCF) and the comparable quoted companies method. The valuation is based on<br />
the weighted mean value, calculated according to the pessimistic and optimistic scenarios. The value<br />
range is +/- 10%. More emphasis was placed on the pessimistic scenario (55- percent weight).<br />
94<br />
<strong>Gorenjska</strong> <strong>banka</strong>, d. d., Kranj<br />
<strong>Annual</strong> <strong>Report</strong> 2011<br />
Financial <strong>Report</strong>
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