BMW 2012 Annual Report Download - page 134

134
78 GROUP FINANCIAL STATEMENTS
78 Income Statements
78 Statement of
Comprehensive Income
80 Balance Sheets
82 Cash Flow Statements
84 Group Statement of Changes
in Equity
86 Notes
86 Accounting Principles
and Policies
100 Notes to the Income
Statement
107 Notes to the Statement
of Comprehensive Income
108 Notes to the Balance Sheet
129 Other Disclosures
145 Segment Information
EUR USD GBP JPY
in %
Interest rate for six months 0.10 0.21 0.49 0.16
Interest rate for one year 0.10 0.23 0.49 0.24
Interest rate for five years 0.77 0.84 1.03 0.30
Interest rate for ten years 1.61 1.82 1.92 0.84
Fair value measurement of financial instruments
The fair values shown are computed using market in-
formation
available at the balance sheet date, on the
basis of prices quoted by the contract partners or using
appropriate measurement methods, e. g. discounted
cash flow models. In the latter case, amounts were
discounted at 31 December 2012 on the basis of the fol-
lowing interest rates:
Interest rates taken from interest rate curves were ad-
justed,
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 instru-
ments 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. Observable financial market price spreads
(e. g. for liquidity risks) are taken into account in the
measurement 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 allo-
cated 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 2012:
31 December 2012 Level hierarchy in accordance with IFRS 7
in € million Level 1 Level 2 Level 3
Marketable securities, investment fund shares and collateral assets – available-for-sale 2,812 – –
Other investments – available-for-sale 391 – –
Derivative instruments (assets)
Cash flow hedges – 925 –
Fair value hedges – 1,457 –
Other derivative instruments – 610 –
Derivative instruments (liabilities)
Cash flow hedges – 701 –
Fair value hedges – 320 –
Other derivative instruments – 769 –