DHL 1999 Annual Report Download - page 128

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Notes
139
Market values (fair values) of primary financial
instruments
Reflecting the balance sheet structure, the fair values of
the primary financial instruments can be determined as
follows:
•The portfolios are recognized at the fair value, i.e.,the
carrying amount matches the fair value.
•Cash funds:The fair value matches the carrying amount.
•Receivables from banks account for a fair value of
EUR 27,261 million. The carrying amount is EUR
27,169 million. The difference results from the valua-
tion of borrower’s-note loans and the valuation of
registered bonds.
•Receivables from customers account for a fair value of
EUR 3,337 million, as against a carrying amount of
EUR 3,336 million. The difference results from the
valuation of borrower’s-note loans.
•Borrower’s-note loans and other fixed-interest bearing
securities in connection with financial assets and trade
assets account for a fair value of EUR 16,377 million,as
against a carrying amount of EUR 16,980 million.
Shares and other non-fixed interest bearing securities
account for a fair value of EUR 8,340 million,as against
a carrying amount of EUR 8,088 million.
•All other receivables and liabilities: Fair values largely
match carrying amounts.
(39.b) Risks and market values of the remaining
Deutsche Post Group’s financial instruments
Apart from the Deutsche Postbank Group,no Deutsche
Post AG unit held significant derivative financial instru-
ments on December 31, 1999 (as on December 31,
1998).
Interest rate risk, i.e., the risk that the value of financial
instruments may change due to changes in market
interest rates, is especially associated with receivables,
liabilities and marketable securities providing for ma-
turities of more than one year. Such maturities are only
relevant to financial assets and borrowings.
Of the financial assets, only housing promotion loans
involve interest rate risks. Compared with the market
interest rate for similar financial assets as of December
31, 1999, the majority of the housing promotion loans
bear lower than market interest or are even non-interest
bearing. They are recognized with a fair value amount-
ing to EUR 23 million (1998: EUR 205 million).The
nominal value amounts to EUR 56 million (1998: EUR
363 million).
On the balance sheet date (12.31.1999), the liabilities
disclosed under borrowings do not provide for any sig-
nificant interest rate risk, since most of these liabilities
are floating rate financial instruments. Accordingly, the
differences between fair values and carrying amounts of
the borrowings are relatively small.
Other risks
Other risks such as currency risks, market risks, credit
risks and cash flow risks are of minor importance to the
primary financial instruments of the Group.
Market values (fair values)
The market value of a primary financial instrument is
the amount obtainable from the sale, or payable on the