Nokia 2011 Annual Report Download - page 259

Level 2 category includes financial assets and liabilities measured using a valuation technique based
on assumptions that are supported by prices from observable current market transactions. These
include assets and liabilities for which pricing is obtained via pricing services, but where prices have
not been determined in an active market, financial assets with fair values based on broker quotes and
assets that are valued using the Group’s own valuation models whereby the material assumptions are
market observable. The majority of Group’s over-the-counter derivatives and several other instruments
not traded in active markets fall within this category.
Level 3 category includes financial assets and liabilities measured using valuation techniques based on
non market observable inputs. This means that fair values are determined in whole or in part using a
valuation model based on assumptions that are neither supported by prices from observable current
market transactions in the same instrument nor are they based on available market data. However, the
fair value measurement objective remains the same, that is, to estimate an exit price from the
perspective of the Group. The main asset classes in this category are unlisted equity investments as
well as unlisted funds.
The following table shows a reconciliation of the opening and closing recorded amount of Level 3
financial assets which are measured at fair value:
EURm
Other available-
for-sale
investments
carried at fair
value
Balance at December 31, 2009 242
Total gains (losses) in income statement ....................................... 3
Total gains (losses) recorded in other comprehensive income ..................... (11)
Purchases ............................................................... 78
Sales .................................................................... (34)
Other transfers ............................................................ 1
Balance at December 31, 2010 279
Total gains (losses) in income statement ....................................... (22)
Total gains (losses) recorded in other comprehensive income ..................... 51
Purchases ............................................................... 81
Sales .................................................................... (47)
Other transfers ............................................................ 4
Balance at December 31, 2011 ............................................. 346
The gains and losses from Level 3 financial instruments are included in other operating expenses for
the respective period. A net loss of EUR 30 million (net loss of EUR 12 million in 2010) related to
level 3 financial instruments held at December 31, 2011, was included in the profit and loss during
2011.
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