Mercedes 2013 Annual Report Download - page 242

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The fair value measurement for the RRPSH put option will
be carried out on the basis of a binomial model, with measure-
ment on a quarterly basis. In the course of the valuation
process, the required market data will be collected and the
non-observable parameters will be examined and updated
as required on the basis of internally available current informa-
tion. In particular, the premises of the enterprise value of
RRPSH determined using the discounted cash flow method will
be validated in each quarter. The results of the measurement
of the RRPSH put option, as well as any significant changes
in the input parameters and their respective effects on the value
of the option, will be reported to management on a quarterly
basis.
Parameters with a significant influence on the measurement
of the option are the value of RRPSH as determined with the
use of a discounted cash flow method and the expected vola-
tility of that value. The approach for volatility estimation was
changed to a direct analysis of the historical volatility of a peer
group index. This change in estimate had no material effect
on RRPSH put option value as of December 31, 2013. A sensitivity
analysis shows that a 10% increase in the value of RRPSH
would lead to a reduction in the value of the option of €29 million.
On the other hand, a 10% decrease in the value of RRPSH
would increase the value of the option by €38 million. A 10%
increase in the expected volatility of the value of RRPSH would
lead to an increase in the value of the option of €33 million.
However, a 10% decrease in the expected volatility of the value
of RRPSH would reduce the value of the option by €33 million.
Table  F.80 shows into which measurement hierarchies
(according to IFRS 13) the financial assets and liabilities are
classified which cannot be measured at fair value.
The carrying amounts of financial instruments presented
according to IAS 39 measurement categories are shown
in table  F.81.
F.80
Fair value hierarchy of financial assets and liabilities not measured at fair value
At December 31, 2013
Total Level 11Level 22Level 33
In millions of euros
Financial assets measured at cost
Receivables from financial services 51,115 – 51,115 –
Financial liabilities measured at cost
Financing liabilities 79,026 36,384 42,642 –
thereof bonds 39,656 35,161 4,495 –
thereof liabilities from ABS transactions 6,145 1,223 4,922 –
thereof other financing liabilities 33,225 – 33,225 –
1 Fair value measurement for the asset or liability based on quoted prices (unadjusted) in active markets for these or identical assets or liabilities.
2 Fair value measurement for the asset or liability based on inputs that are observable on active markets either directly (i.e. as prices) or indirectly
(i.e. derived from prices).
3 Fair value measurement for the asset or liability based on inputs that are not observable market data.