CEF Annual report 2021

84 CEF FINANCIAL REPORT 2021
NOTES TO THE FINANCIAL STATEMENTS 85
CURRENCY RISK
Exposure to changes in exchange rates is presented in the table below.
Currency risk December 31, 2021 EUR USD CHF GBP
Cash and cash equivalents 2,242,706 2,241,571 1,135 0 0
Trade receivables 65,744 65,744 0 0 0
Operating liabilities 305,359 304,876 0 484 0
Total 2,613,809 2,612,190 1,135 484 0
Currency risk December 31, 2020 EUR USD CHF GBP
Cash and cash equivalents 2,282,149 2,280,967 1,182 0 0
Trade receivables 75,508 75,508 0 0 0
Operating liabilities 146,732 145,320 0 1,412 0
Total 2,504,389 2,501,795 1,182 1,412 0
EUR
EUR
Financial liabilities
Fair value is calculated for reporting purposes based on the present value of future principal and interest payments,
discounted using a market interest rate at the end of the reporting period.
Trade and other receivables
The fair value of operating and other receivables is calculated for reporting purposes based on the present value of
future principal and interest, discounted according to a market interest rate at the reporting date.
Financial instruments are categorized to three levels with respect to the calculation of their fair value:
Level 1 – assets and liabilities at market price (the use of published prices arising on an active market for the same
assets or liabilities);
Level 2 – assets and liabilities not classified as Level 1 but whose value is determined directly or indirectly on the
basis of market observables;
Level 3 – assets and liabilities whose value cannot be determined on the basis of market observables and thus cannot
be classified to Level 1 or Level 2.
The fair value of current assets and liabilities is equal to their carrying amount.
Change in exchange rate would not have significant effect on the financial statements.
FAIR VALUE
EUR
INTEREST-RATE RISK
Exposure to interest-rate risk, i.e. the risk of changes in interest rates on deposits, is low. By planning investment activities,
current operations and deposits, the CEF’s cash flows are coordinated and do not require borrowings.
Interest-rate risk December 31, 2021 December 31, 2020
Financial instruments at fixed interest rates
Financial assets (deposits) 2,237,471 2,261,450
Financial liabilities 0 0
Financial instruments at fixed interest rates
Financial assets 0 0
Financial liabilities 0 0
Total 2,237,471 2,261,450
Determination of fair value
Given the CEF’s accounting policies and classification approach, the determination of the fair value of both financial
and non-financial assets and liabilities is necessary.
The fair values of individual groups of assets were determined for measurement and/or reporting purposes based on
the method described below.
EUR
Fair value
Carrying
amount
2021
Fair value
Carrying
amount
2020
Fair value
Trade receivables 65,744 65,744 75,508 75,508
Cash and cash equivalents 2,242,706 2,242,706 2,282,149 2,282,149
Prepayments and other assets 655,436 655,436 47,543 47,543
Trade payables 145,403 145,403 16,847 16,847
Other short-term payables 21,284 21,284 4,223 4,223
Advances payable and other current liabilities 963,058 963,058 619,151 619,151
Total 4,093,629 4,093,629 3,045,421 3,045,421
FAIR VALUE OF ASSETS
Fair value of assets Level 1 Level 2
2021
Level 3 Level 1 Level 2
EUR
2020
Level 3
Trade receivables 0 0 65,744 0 0 75,508
Cash and cash equivalents 2,242,706 0 0 2,282,149 0 0
Prepayments and other assets 0 0 655,436 0 0 47,543
Total 2,242,706 0 721,170 2,282,149 0 123,051
Non-current financial assets
The fair value of non-current financial assets is determined on the closing market price as at the reporting date.