DHL 2010 Annual Report Download - page 212

 e following table presents the methods used to determine
the fair value for each class:
 e fair value of currency forwards was measured on the
basis of discounted future expected cash  ows, taking forward rates
on the foreign exchange market into account.  e currency options
were measured using the Black-Scholes option pricing model.
Level  includes commodity, interest rate and currency
derivatives, and the forward and options entered into in the context
of the planned sale of the Deutsche Postbank  shares.
Financial assets and liabilities: 
 m
Level 1 2 3
Class
Quoted
market prices
Measurement
using key
inputs based
on observable
market data
Measurement
using key
inputs not based
on observable
market data
Non-current fi nancial assets
at fair value 140 2,465 0
Current fi nancial assets
at fair value 407 38 0
Non-current fi nancial
liabilities at fair value 0–15 0
Current fi nancial liabilities
at fair value 0 –137 0
Financial assets and liabilities: 
 m
Level 1 2 3
Class
Quoted
market prices
Measurement
using key inputs
based on
observable
market data
Measurement
using key inputs
not based on
observable
market data
Non-current fi nancial assets
at fair value 118 754 0
Current fi nancial assets
at fair value 1,605 31 0
Non-current fi nancial
liabilities at fair value 0–84 0
Current fi nancial
liabilities at fair value 0–57 0
If there is an active market for a  nancial instrument (e. g.,
stock exchange), the fair value is determined by reference to the
market or quoted exchange price at the balance sheet date. If no fair
value is available in an active market, the quoted prices in an active
market for similar instruments or recognised valuation techniques
are used to determine the fair value.  e valuation techniques
used incorporate the key factors determining the fair value of the
 nancial instruments using valuation parameters that are derived
from the market conditions as at the balance sheet date. Counter-
party risk is analysed on the basis of the current credit default
swaps signed by the counterparties.  e fair values of other non-
current receivables and held-to-maturity  nancial investments
with remaining maturities of more than one year correspond to
the present values of the payments related to the assets, taking into
account current interest rate parameters.
Cash and cash equivalents, trade receivables and other receiv-
ables have predominantly short remaining maturities. As a result,
their carrying amounts at the reporting date are approximately
equivalent to their fair values. Trade payables and other liabilities
generally have short remaining maturities; the recognised amounts
approximately represent their fair values.
Available-for-sale  nancial assets include shares in partner-
ships and corporations in the amount of   million (previous year
  million).  ere is no active market for these instruments. As
no future cash  ows can be reliably determined, the fair values
cannot be determined using valuation techniques.  e shares of
these entities are recognised at cost.  ere are no plans to sell or
derecognise signi cant shares of the available-for-sale  nancial
assets recognised as at  December  in the near future. As in
the previous year, no signi cant shares measured at cost were sold
in the  nancial year. Available-for-sale  nancial assets measured at
fair value relate to equity and debt instruments.
Financial assets at fair value through pro t or loss include
securities to which the fair value option was applied, in order to
avoid accounting inconsistencies.  ere is an active market for
these assets, which are recognised at fair value.
Deutsche Post DHL Annual Report 
198