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8 Financial instruments

Fair value of financial instruments

The carrying amounts and fair values of financial assets and financial liabilities with their corresponding valuation categories are summarised in the following table. Not reflected therein are cash and cash equivalents, trade receivables and payables as well as miscellaneous receivables and payables whose carrying amount corresponds to a reasonable estimation of their fair value. The fair value hierarchy encompasses the following three levels:

  • Level 1: stock-exchange quoted prices in active markets for identical assets or liabilities;
  • Level 2: other factors which are observable on markets for assets and liabilities, either directly or indirectly;
  • Level 3: factors that are not based on observable market data.
  Carrying amount   Fair Value

In CHF million
 
Loans and
receivables
 
Available-
for-sale
  At fair value
through profit
or loss
 
Financial
liabilities
 

Level 1
 

Level 2
 

Level 3
               
30 June 2017
Derivative financial instruments       49       49  
Other assets valued at fair value       60     60    
Available-for-sale financial assets     15           15
Financial assets measured at fair value     15   109     60   49   15
                             
Other loans and receivables   265           285  
Financial assets not measured at fair value   265           285  
                             
Derivative financial instruments       67       67  
Financial liabilities measured at fair value       67       67  
                             
Bank loans         877     906  
Debenture bonds         6,531   6,848    
Private placements         742     752  
Finance lease liabilities         508     1,019  
Other interest-bearing financial liabilities         60     60  
Other non-interest-bearing financial liabilities         274     274  
Financial liabilities not measured at fair value         8,992   6,848   3,011  

In addition, as of 30 June 2017, there were available-for-sale financial assets with a carrying amount of CHF 45 million which are valued at acquisition cost.

Level-3 assets consist of investments in various investment funds. The fair value was calculated using a valuation model. In the first half of 2017, there were no changes to the carrying amount and no reclassifications between the various levels.