PDF (7.3 MB) - GILDEMEISTER Interim Report 3rd Quarter 2012

198Consolidated Financial Statements of gildemeister Aktiengesellschaft: Notes to the Consolidated Financial StatementsFor financial instruments accounted at fair value, the fair value is determined, in principle,by way of stock market prices. Insofar as stock market prices are not available, measurementis carried out applying standard economic methods (measurement methods), takinginstrument-specific market parameters as a basis.Fair value assessment is carried out by means of the discounted cash flow method,where the individual credit-standings and other market circumstances in the form ofstandard market credit-standings or liquidity spreads are taken into account in the cashvalue assessment.Financial assets are measured at fair value or acquisition cost (if necessary takingimpairments into account). A reliable determination of the fair value when measuringacquisition costs would only be possible within the scope of specific sales negotiations.For loans and receivables, which are measured at amortised acquisition costs, thereis no liquid market. For short-term loans and receivables it is assumed that the fair valuecorresponds to the carrying amount. All other loans and receivables are assessed at fairvalue through the deduction of accrued interest on future expected cash flows. In this,interest rates are used for credits, for which credits with a corresponding risk structure,original currency and term have been re-concluded.Trade payables and other current financial liabilities in general have a term of lessthan one year, so that the carrying amount corresponds approximately to the fair value.For the non-stock market listed borrowers‘ notes, liabilities to banks and other noncurrentliabilities, the fair values are cash values of the payments related to the liabilitiestaking market standard interest rates as the basis.consolidated financialstatementsFair Value HierarchyAs at 31 December 2010, the financial assets and liabilities presented in the followingtable and measured at fair value were held.Determining and the classification of fair value of financial instruments is based ona fair value hierarchy, which takes into account the significance of the input data used inthe measurement and follows the following stages:Stage 1: Prices listed on active markets (taken over unchanged) for identicalfinancial assets and liabilitiesStage 2: for assets or liabilities which are not represented by any listed price inaccordance with Stage 1, either direct (as the price) or indirect (derived from price)observable input data,Stage 3: input data applied that is not based on observable market data for themeasurement of assets and liabilities (non-observable input data).