ING Direct 2013 Annual Report Download - page 200

Notes to the consolidated annual accounts of ING Group continued
Changes in Level 3 Financial liabilities
2013
Trading
liabilities
Non-trading
derivatives
Financial
liabilities
designated as
at fair value
through profit
and loss
Investment
contracts
(for contracts
carried at fair
value) Total
Opening balance 1,523 1,500 5,102 12 8,137
Amounts recognised in the profit and loss account during the year –110 315 –137 68
Issue of liabilities 510 263 226 61,005
Early repayment of liabilities –720 –452 –907 –8 –2,087
Maturity/settlement –276 –9 –420 –705
Transfers into Level3 245 152 2399
Transfers out of Level3 –63 –3,676 –8 –3,748
Exchange rate differences –3 –372 3–371
Changes in the composition of the group and other changes –1,245 –5 –1,250
Closing balance 1,105 0343 01,448
In 2013, Changes in the composition of the group and other changes includes EUR –1,250 million as a result of the classification of ING U.S.
as held for sale and nil as a result of the classification to continuing operations of ING Japan. Reference is made to Note 59 ‘Other events’.
In 2013, EUR 3.7 billion of Financial liabilities designated as at fair value through profit and loss were transferred from level 3 to level 2 due
to refinements in the methodology used to classify these liabilities. It was observed that the valuation techniques used for calculating the
fair values, for the majority of the portfolio, are not significantly impacted by unobservable inputs. These liabilities are reported in level 2.
Furthermore, EUR 0.9 billion of Assets-Non trading derivatives were also transferred from level 3 to level 2 as the valuation is now not
significantly impacted by unobservable inputs.
Changes in Level 3 Financial liabilities
2012 Trading liabilities
Non-trading
derivatives
Financial
liabilities
designated as
at fair value
through profit
and loss
Investment
contracts
(for contracts
carried at fair
value) Total
Opening balance 940 2,196 4,272 12 7,420
Amounts recognised in the profit and loss account during the year 232 –850 96 –522
Issue of liabilities 1,378 239 2,614 12 4,243
Early repayment of liabilities –348 –49 –1,067 –6 –1,470
Maturity/settlement –535 –3 –1,174 –1,712
Transfers into Level3 85 7395 487
Transfers out of Level3 –223 –19 –30 –6 –278
Exchange rate differences –8 –22 –4 –31
Closing balance 1,523 1,500 5,102 12 8,137
Amounts recognised in the profit and loss account during the year (Level 3)
2013
Held at balance
sheet date
Derecognised
during the year Total
Financial assets
Trading assets 158 –12 146
Investments for risk of policyholders 10 –1 9
Non-trading derivatives 383 26 409
Financial assets designated as at fair value through profit and loss –341 88 –253
Available-for-sale investments –130 27 –103
80 128 208
Financial liabilities
Trading liabilities –110 –110
Non-trading derivatives 315 315
Financial liabilities designated as at fair value through profit and loss –137 –137
68 68
198 ING Group Annual Report 2013