Reebok 2013 Annual Report Download - page 229

adidas Group
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2013 Annual Report
Consolidated Financial Statements
225
2013
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04.8
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Notes
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Notes to the Consolidated Statement of Financial Position
Financial instruments Level 2 measured at fair value
Type Valuation method Significant unobservable
inputs
Category
Short-term financial
assets
The discounted cash flow method is applied, which
considers the present value of expected payments,
discounted using a risk-adjusted discount rate. Due to
their short-term maturities, their respective fair value is
equal to the notional amount.
Not applicable FAHfT
Available-for-sale
financial assets
The fair value is based on the market price of the assets
as at December 31, 2013.
Not applicable AfS
Forward contracts For EUR/USD, the adidas Group applies the par method,
which uses actively traded forward rates. For the other
currency pairs, the zero coupon method is applied.
The zero method is a model for the determination of
forward rates based on deposit and swap interest rates.
Not applicable n.a. respectively
FAHfT
Currency options The adidas Group applies the Garman-Kohlhagen model,
which is an extended version of the Black-Scholes
model.
Not applicable n.a. respectively
FAHfT
Financial instruments Level 2 not measured at fair value
Type Valuation method Significant unobservable
inputs
Category
Private placements The discounted cash flow method is applied, which
considers the present value of expected payments,
discounted using a risk-adjusted discount rate.
Not applicable FLAC
Financial instruments Level 3 measured at fair value
Type Valuation method Significant unobservable
inputs
Category
Investment in
FC Bayern
München AG
This equity security does not have a quoted market price
in an active market. Existing contractual arrangements
(based on the externally observable dividend policy of the
Bayern München AG) are used in order to calculate the
fair value as at December 31, 2013.
See column
“Valuation method”
FAHfT
Net gains/losses on financial instruments recognised in the consolidated income statement
(€ in millions) Year ending
Dec. 31, 2013
Year ending
Dec. 31, 2012
Financial assets or financial liabilities at fair value through profit or loss (16) (20)
Thereof: designated as such upon initial recognition — —
Thereof: classified as held for trading (16) (20)
Loans and receivables (13) 1
Available-for-sale financial assets — —
Financial liabilities measured at amortised cost 15 14
Net gains or losses on financial assets or financial liabilities held for trading include the effects from fair value
measurements of the derivatives that are not part of a hedging relationship, and changes in the fair value of other
financial instruments as well as interest payments.
Net gains or losses on loans and receivables comprise mainly impairment losses and reversals.
Net gains or losses on financial liabilities measured at amortised cost include effects from early settlement
and reversals of accrued liabilities.
The disclosures required by IFRS 7 “Financial Instruments: Disclosures”, paragraphs 13 A to 13F (“Offsetting
financial assets and financial liabilities”) as well as 31 to 42 (“Nature and Extent of Risks arising from Financial
Instruments”) can be found in
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NOTE 06 and the Group Management Report
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SEE RISK AND OPPORTUNITY REPORT,
P. 158.