Mercedes 2015 Annual Report Download - page 245

252 E | CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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 financial 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 in accordance
with the master netting arrangements (framework agreement)
of the International Swaps and Derivatives Association (ISDA)
and other appropriate national framework agreements. However,
these arrangements 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  E.69 shows the carrying amounts of the derivative
financial instruments subject to the described arrangements
as well as the possible financial effects of netting in accor-
dance with the master netting arrangements.
Table  E.70 provides an overview of the classification
into measurement hierarchies of financial assets and liabilities
measured at fair value (according to IFRS 13).
At the end of each reporting period, Daimler reviews
the necessity of reclassification between the measurement
hierarchies.
E.69
Disclosure for recognized financial instruments that are subject to an enforceable
master netting arrangement or similar agreement
At December 31, 2015 At December 31, 2014
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 assets11,566 -1,045 521 1,393 -670 723
Other financial liabilities23,383 -1,045 2,338 2,676 -670 2,006
1 The other financial assets which are subject to a master netting arrangement comprise derivative financial instruments
that are included in hedge accounting and financial assets measured at fair value through profit or loss (see Note 16).
2 The other financial liabilities which are subject to a master netting arrangement comprise derivative financial instruments
that are included in hedge accounting and financial liabilities measured at fair value through profit or loss (see Note 25).