ING Direct 2015 Annual Report Download - page 110

Contents
Who we are
Report of the
Management
Board
Corporate
Governance
Consolidated
annual accounts
Parent company
annual accounts
Other
information
Additional
information
Notes to the Consolidated annual accounts of ING Bank - continued
Financial instruments at fair value
The fair values of the financial instruments were determined as follows:
2015
Level 1
Level 2
Level 3
Total
Financial Assets
Trading assets
27,144
103,195
1,146
131,485
Non-trading derivatives
4
3,205
7
3,216
Financial assets designated as at fair value through profit and loss
242
2,654
338
3,234
Available-for-sale investments
81,640
4,667
693
87,000
109,030
113,721
2,184
224,935
Financial liabilities
Trading liabilities
9,037
78,531
1,239
88,807
Non-trading derivatives
4,363
1
4,364
Financial liabilities designated as at fair value through profit and loss
1,578
10,840
198
12,616
10,615
93,734
1,438
105,787
Main changes in fair value hierarchy in 2015
In 2015, the decrease in Available-for-sale investments (Level 1) is mainly as a result of the reclassification of Government bonds
(EUR 3.5 billion) to Investments–Held-to-maturity. Reference is made to Note 5 ‘Investments’.
There were no significant transfers between Level 1 and Level 2.
In 2015, there were changes in the valuation techniques driven by current market conditions, with LIBOR being negative.
2014
Level 1
Level 2
Level 3
Total
Financial Assets
Trading assets
35,965
100,189
810
136,964
Non-trading derivatives
4,173
130
4,303
Financial assets designated as at fair value through profit and loss
346
2,320
90
2,756
Available-for-sale investments
89,101
5,727
573
95,401
125,412
112,409
1,603
239,424
Financial liabilities
Trading liabilities
11,204
84,890
997
97,091
Non-trading derivatives
6,341
16
6,357
Financial liabilities designated as at fair value through profit and loss
1,719
11,509
323
13,551
12,923
102,740
1,336
116,999
Main changes in fair value hierarchy in 2014
In 2014, the change in Available-for-sale investments (Level 1) is due to an increase in Government bonds to strengthen the liquidity of
the Bank. Ahead of the introduction of the liquidity coverage ratio in 2015 matured bonds (Level 2 in 2013) were re-invested in
Government bonds (Level 1).
As at 31 December 2014, ING Direct Australia reclassified EUR 2.6 billion Government and Semi-Government debt securities from
Level 2 to Level 1 as the input was based on quoted prices in an active market.
Methods applied in determining fair values of financial assets and liabilities (carried at fair value)
Methods applied in determining fair values of financial assets and liabilities (carried at fair value)
ING Bank Annual Report 2015 108