Fair value hierarchy of financial assets and liabilities
Accounting principles Financial assets and liabilities measured at fair value have been categorised as follows: Level 1 Fair value is based on quoted prices in active markets. Level 2 Fair value is determined by using valuation techniques that use observable price information from market. Level 3 Fair value are not based on observa-ble market data, but on company’s own assumptions.
The fair values of electricity, natural gas and fuel oil derivatives are determined by using public price quotations in an active market (Level 1). The fair values of currency forwards and options are determined by using the market prices of the closing date of the reporting period. The fair values of interest rate swaps are determined by using the present value of expected payments, discounted using a risk adjusted discount rate, supported by market interest rates and other market data of the closing date of the reporting period (Level 2). For financial instruments not traded on an active market, the fair value is determined by valuation techniques. Judgment is used when choosing the different techniques and making assumptions, which are mainly based on circumstances prevailing in the markets on each closing date of the reporting period (Level 3).
The fair value measurement of financial assets at fair value recognised under other items of comprehensive income is described in Note 4.3.
Fair value hierarchy of financial assets and liabilities 2022
31 Dec 2022
EUR million
Note
Level 1
Level 2
Level 3
Total
Financial assets at fair value Other non-current investments
4.3
345.4
345.4
Derivative financial assets
5.7
6.7
36.7
43.4
Financial liabilities measured at fair value Derivative financial liabilities Financial assets not measured at fair value Cash and cash equivalents Financial liabilities not measured at fair value Non-current interest-bearing financial liabilities
5.7
5.0
25.2
30.2
5.4
356.2
356.2
5.5 5.5
413.6
413.6
Current interest-bearing financial liabilities
18.6
18.6
Fair value hierarchy of financial assets and liabilities 2021
31 Dec 2021
EUR million
Note
Level 1
Level 2
Level 3
Total
Financial assets at fair value Other non-current investments
4.3
181.0
181.0
Derivative financial assets
5.7
32.0
2.0
34.0
Financial liabilities measured at fair value Derivative financial liabilities Financial assets not measured at fair value Cash and cash equivalents Financial liabilities not measured at fair value Non-current interest-bearing financial liabilities
5.7
0.1
20.2
20.3
5.4
524.2
524.2
5.5 5.5
466.3
466.3
Current interest-bearing financial liabilities
10.0
10.0
Other non-current investments measured at fair value based on level 3 valuation
EUR million
2022
2021
Value 1 Jan
181.0
186.9
Total gains and losses in profit and loss
2.8
-0.1 -5.8
Total gains and losses in other comprehensive income
178.5
Purchases
0.0
Sales
-16.9
0.0 0.0
Transfers out from Level 3
Value Dec 31.
345.4
181.0
129
Consolidated financial statements | METSÄ BOARD ANNUAL AND SUSTAINABILITY REPORT 2022
Powered by FlippingBook