Annual report 2010 - Dexia.com

Notes to the consolidated financial statements7.5.2. Financial assets designated at fair valueManagement reportConsolidatedfinancial statementsA. Analysis By counterpart31/12/09 31/12/10Public sector 209 111Banks 29 31Other 3,477 3,799Total 3,715 3,941B. Analysis by nature31/12/09 31/12/10Loans 49 43Bonds issued by public bodies 46 36Other bonds and fixed-income instruments 394 285Equity and variable-income instruments 31 34Unit-linked products Insurance – bonds and loans 655 459Unit-linked products Insurance – equity and variable-income instruments 2,539 3,085Total 3,715 3,941Financial assets on public sector are disclosed in bonds issued by public bodies and also partially in loans and in unit-linkedproductsC. Treasury bills and other eligible bills for refinancing to the central banksNil.Additional information Annual financial statementsD. Securities pledged under repurchase agreements with other banksNil.E. Analysis by maturity and interest rateSee notes 12.4., 12.5. and 12.6.F. Analysis of the fair valueSee note 12.1.The Fair Value Option (FVO) for financial assets is mainly usedin the following situations:1) by the insurance business for unit-linked products (branch23), the return of the unit-linked product belongs totally toits policy holder.2) the FVO is used as an alternative method in order to reducevolatility in profit or loss when, at inception, there is a riskthat the hedge accounting requirements will not be met.The methodology followed to determine the fair valueof financial assets designated at fair value is presented innote 1. Accounting principles and rules of consolidatedfinancial statements – subsection 1.7. Fair value of financialinstruments.152 Dexia Annual report 2010