BMW 2010 Annual Report Download - page 124

122
74 GROUP FINANCIAL STATEMENTS
74 Income Statements
74 Statement of
Comprehensive Income
76 Balance Sheets
78 Cash Flow Statements
80 Group Statement of Changes
in Equity
81 Notes
81 Accounting Principles
and Policies
89 Notes to the Income
Statement
95 Notes to the Statement
of Comprehensive Income
96 Notes to the Balance Sheet
117 Other Disclosures
133 Segment Information
ISO-Code EUR USD GBP JPY
in %
Interest rate for six months 0.85 0.31 0.63 0.23
Interest rate for one year 0.94 0.39 0.71 0.30
Interest rate for five years 2.51 2.22 2.69 0.56
Interest rate for ten years 3.39 3.55 3.69 1.18
Fair value measurement of financial instruments
The fair values shown are computed using market infor-
mation available at the balance sheet date, on the basis
of prices quoted by the contract partners or using appro-
priate measurement methods, e.g. discounted cash flow
models. In the latter case, amounts were discounted at
31December 2010 on the basis of the following interest
rates:
Interest rates taken from interest rate curves were adjusted,
where necessary, to take account of the credit quality and
risk of the underlying financial instrument.
Derivative financial instruments are measured at their fair
value. The fair values of derivative financial instruments are
determined using measurement models, as a consequence
of which there is a risk that the amounts calculated could
differ from realisable market prices on disposal. The supply
of data to the model used to calculate fair values was refined
in 2010. Observable financial market price spreads (e.g. for
liquidity risks) are now taken into account in the measure-
ment of derivative financial instruments, thus helping to
minimise differences between the carrying amounts of the
instruments and the amounts that can be realised on the
financial markets on the disposal of those instruments.
Financial instruments measured at fair value are allocated
to different measurement levels in accordance with IFRS7.
This includes financial instruments that are
1 measured at their fair values in an active market for
identical financial instruments (level 1),
2 measured at their fair values in an active market for
comparable financial instruments or using measure-
ment
models whose main input factors are based on
observable market data (level 2) or
3
using input factors not based on observable market data
(level 3).
The following table shows the amounts allocated to each
measurement level at 31 December 2010:
31 December 2010 Level hierarchy in accordance with IFRS 7
in euro million Level 1 Level 2 Level 3
Marketable securities and investment fund shares – available-for-sale 1,566 – –
Derivative instruments (assets)
Cash flow hedges – 900 –
Fair value hedges – 1,102 –
Other derivative instruments – 779 –
Derivative instruments (liabilities)
Cash flow hedges – 921 –
Fair value hedges – 375 –
Other derivative instruments – 714 –
31 December 2009 Level hierarchy in accordance with IFRS 7
in euro million Level 1 Level 2 Level 3
Marketable securities and investment fund shares – available-for-sale 543 1,105 –
Derivative instruments (assets)
Cash flow hedges – 619 –
Fair value hedges – 1,080 –
Other derivative instruments – 734 –
Derivative instruments (liabilities)
Cash flow hedges – 321 –
Fair value hedges – 282 –
Other derivative instruments 1 489 –