Mercedes 2008 Annual Report Download - page 200

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The carrying amounts of financial instruments presented accord-
ing to IAS 39 measurement categories are as follows:
The fair values of financial instruments were calculated on the
basis of market information available on the balance sheet date
using the methods and premises presented below.
Receivables from financial services. The fair values of receiv-
ables from financial services with variable interest rates are esti-
mated to be equal to the respective carrying amounts since the
interest rates agreed and those available on the market
do not significantly differ. The fair values of receivables from finan-
cial services with fixed interest rates are determined on the
basis of discounted expected future cash flows. The discounting
is based on the current interest rates at which similar loans
with identical terms could have been borrowed as of December 31,
2008 and December 31, 2007.
Trade receivables and cash and cash equivalents. Due to
the short terms of these financial instruments, it is assumed that
their fair values are equal to the carrying amounts.
Other financial assets. Financial assets available for sale
include the following:
– Equity interests measured at fair value. The equity interests
measured at fair value were measured using quoted market
prices at December 31.
– Equity interests measured at cost. These equity interests
for which market prices or fair values are not available are mea-
sured at cost. These equity interests comprise shares in non-
listed companies for which no objective evidence existed at the
balance sheet date that these assets are impaired. Since cash
flows could not be reliably determined, these investments have
not been measured by discounting the estimated future cash
flows. It is assumed that the fair values are equal to the carrying
amounts.
– Debt instruments. Debt instruments were measured using quot-
ed market prices at December 31. The fair values of debt secu-
rities for which quoted prices could not be obtained on
the market were based on valuation models using market data.
Financial assets recognized at fair value through profit or loss
include the following:
– Derivative financial instruments not used in hedge accounting.
For further details on the currency, interest rate and commodity
hedging contracts, see the comments under derivative finan-
cial instruments used in hedge accounting. The fair values of
hedging instruments for equities are calculated using price
quotations in consideration of forward premiums and discounts
or through option pricing models. Hedging instruments for
equities in 2007 also include instruments for listed investments,
which are accounted for using the equity method.
– Trading securities. The trading securities measured at fair value
were measured using quoted market prices at December 31.
At December 31,
2007
2008
6,999
2,089
27,085
36,173
1,558
2,365
6,478
57,422
8,699
72,600
1,126
6,361
3,581
25,050
34,992
2,344
1,613
6,939
52,876
9,362
69,177
300
Assets
Trade receivables
Other receivables and assets
Receivables from financial services1
Loans and receivables
Available-for-sale financial assets
Financial assets recognized at fair value
through profit or loss2
Liabilities
Trade payables
Financing liabilities3
Other financial liabilities4
Financial liabilities measured at cost
Financial liabilities recognized at fair value
through profit or loss2
The table above does not include cash and cash equivalents or the carrying amounts of derivative
financial instruments used in hedge accounting as these financial instruments are not assigned to an
IAS 39 measurement category.
1 This does not include lease receivables of €15,302 million (2007: €14,163 million) as these are not
assigned to an IAS 39 measurement category.
2 Financial instruments classified as held for trading purposes. Therein included are also financial
instruments that do not qualify for hedge accounting treatment.
3 This does not include liabilities from capital leases of €451 million (2007: €439 million) or
liabilities from non-transference of assets of €764 million (2007: €1,652 million) as these are not
assigned to an IAS 39 measurement category.
4 This does not include liabilities from finance guarantees of €262 million (2007: €218 million) as
these are not assigned to an IAS 39 measurement category.
in millions of €