No power train without Miba technology

110
Determination of fair value
The fair value of securities (held for trading) is based on current rates and represents the
market value on the reporting date.
The fair values of interest-bearing liabilities are determined, if material, as present values
of the payments associated with the debts based on currently observable market parameters
(yield curves, exchange rates and credit ratings of contracting partners).
The market prices determined by banks on the reporting date are used to measure derivative
financial instruments. If no market prices are used, the fair value is calculated using
recognized financial models. The recognized fair values correspond in each case to the
amount for which an asset could be exchanged or a liability settled between knowledgeable,
willing parties in an arm’s length transaction.
The table provided below presents the financial instruments which undergo subsequent
valuation at fair value. They are classified at Levels 1 through 3 depending on the extent
to which fair value is observable:
Level 1: Market prices for identical financial assets and liabilities listed on active markets.
Level 2: Fair values determined using listed prices or valuation methods; parameters
essential to determining value are based on observable market data.
Level 3: Fair values resulting from models in which parameters essential to determining
value are based on non-observable data.