Mercedes 2013 Annual Report Download - page 240

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Trade payables. Due to the short maturities of these financial
instruments, it is assumed that their fair values are equal
to the carrying amounts.
Other financial liabilities. Financial liabilities recognized
at fair value through profit or loss comprise derivative financial
instruments not used in hedge accounting. For information
regarding these financial instruments as well as derivative finan-
cial instruments used in hedge accounting, see the notes above
under “Marketable debt securities and other financial assets”.
Miscellaneous other financial liabilities are carried at amortized
cost. Because of the predominantly short maturities of these
financial instruments, it is assumed that the fair values approx-
imate the carrying amounts.
Offsetting of financial instruments. The Group concludes
derivative transactions accordance with the master netting
arrangements (framework agreement) of the International
Swaps and Derivatives Association (ISDA) and other appropriate
national framework agreements. However, these arrange-
ments do not meet the criteria for netting in the consolidated
statement of financial position, as they allow netting only
in the case of future events such as default or insolvency on
the part of the Group or the counterparty.
Table  F.76 shows the possible financial effects of netting
in accordance with the described arrangements, irrespective
of whether netting is performed in accordance with IAS 32.42
in the consolidated statement of financial position.
Table  F.77 provides an overview of the classification
of financial assets and liabilities measured at fair value
in the fair value hierarchy (according to IFRS 13).
At the end of each reporting period Daimler reviews the
necessity of reclassification between the fair value hierarchies.
For the determination of the credit risk from derivative
financial instruments which are allocated to the Level 2 fair
value hierarchy, the exception described in IFRS 13.48
(portfolios managed on basis of net exposure) is applied.
The development of financial assets recognized at fair
value through profit or loss and classified as level 3 can
be seen in table  F.78.
The financial assets shown as classified as level 3 and
presented in the table  F.78 consist solely of Daimler’s
option to sell the shares it holds in RRPSH to Rolls-Royce
(see also Note 13).
F.76
Disclosure for recognized financial instruments that are subject to an enforceable
master netting arrangement or similar agreement
At December 31, 2013 At December 31, 2012
Gross and net
amounts of
financial instru-
ments in the
balance sheet
Amounts
subject to a
master netting
arrangement Net amounts
Gross and net
amounts of
financial instru-
ments in the
balance sheet
Amounts
subject to a
master netting
arrangement Net amounts
In millions of euros
Other financial assets 2,053 -206 1,847 1,705 -480 1,225
Other financial liabilities 808 -206 602 873 -480 393