10.2 Fair value hierarchy

On the basis of the input data used for fair value measurement, individual assets and liabilities for which the fair value is presented, are classified to the following levels:

  • Level I – Financial assets and liabilities measured based on listed prices (unadjusted) from active markets for identical assets and liabilities. The level includes:
    • listed liquid debt instruments;
    • listed shares;
    • listed derivatives.
  • Level II – assets and liabilities measured based on input data other than listed prices, classified to Level I, which can be directly (as prices) or indirectly (on the basis of prices) observed on the market. The level includes:
    • unlisted debt securities and non-liquid debt securities (including other than treasury debt securities issued by other financial entities, local government and entities from outside the financial sector);
    • derivatives other than listed ones;
    • investment fund units;
    • investment property or property held for sale, measured with the use of the comparable method, including available development land and some smaller and less valuable buildings (such as residential premises, garages etc.);
    • liabilities to participants in consolidated investment funds;
    • unit-linked investment contracts.
  • Level III – assets measured based on input data unobserved on the existing markets (unobservable input data). This level includes investment property or property held for sale, measured using the income method or the residual method.

In a situation where input data classified into different levels of fair value hierarchy is used for measurement of asset or liability elements, the measured component is attributed to the lowest level, from which the input data originate, which have a significant impact on the overall measurement.

Assets and liabilities measured at fair value as at 31 December 2014Level ILevel IILevel IIITotal
Assets
Financial instruments available for sale 2,523,930 458,234 - 2,982,164
Equity instruments 357,732 189,567 - 547,299
Debt securities 2,166,198 268,667 - 2,434,865
Financial instruments measured at fair value through profit or loss - classified as such upon initial recognition 12,503,393 67,744 - 12,571,137
Equity instruments 1,444,157 38,44 - 1,482,597
Debt securities 11,059,236 29,304 - 11,088,540
Financial instruments measured at fair value through profit or loss – held for trading 2,990,261 3,535,086 - 6,525,347
Equity instruments 1,572,464 2,890,941 - 4,463,405
Debt securities 1,415,953 99,586 - 1,515,539
Derivatives 1,844 544,559 - 546,403
Investment property - 161,092 2,074,970 2,236,062
Assets held for sale 1) - 69,259 60,001 129,26
Liabilities
Derivatives 19,032 606,812 - 625,844
Liabilities to participants of consolidated investment funds - 856,865 - 856,865
Unit linked investment contracts - 587,267 - 587,267

1) Additional information concerning assets held for sale has been presented in Note 43.

Assets and liabilities measured at fair value as at 31 December 2013Level ILevel IILevel IIITotal
Assets
Financial instruments available for sale 1,637,420 279,564 - 1,916,984
Equity instruments 370,228 35,599 - 405,827
Debt securities 1,267,192 243,965 - 1,511,157
Financial instruments measured at fair value through profit or loss - classified as such upon initial recognition 10,963,791 25,088 - 10,988,879
Equity instruments 791,919 25,088 - 817,007
Debt securities 10,171,872 - - 10,171,872
Financial instruments measured at fair value through profit or loss – held for trading 5,976,711 2,938,586 - 8,915,297
Equity instruments 2,528,806 2,553,048 - 5,081,854
Debt securities 3,442,825 130,575 - 3,573,400
Derivatives 5,080 254,963 - 260,043
Investment property - 162,441 1,312,329 1,474,770
Assets held for sale 1) - 38,568 51,435 90,003
Liabilities
Derivatives 1,169 236,58 - 237,749
Liabilities to participants in the consolidated investment funds - 688,282 - 688,282
Unit linked investment contracts - 870,545 - 870,545

1) Additional information concerning assets held for sale has been presented in 43.

Level III investment property31 December 201431 December 2013
Office property 929,977 888,458
Commercial property 230,270 214,440
Warehouse property 891,690 183,790
Other 23,033 25,641
Level III investment property, total 2,074,970 1,312,329

1) Additional information concerning assets held for sale has been presented in 43.

Assets and liabilities whose fair value is disclosed as at 31 December 2014Level ILevel IILevel IIITotal
Assets
Financial instruments held to maturity 20,443,747 3,080,645 - 23,524,392
Entities measured using the equity method - EMC 52,737 - - 52,737
 
Liabilities
Liabilities arising from issue of debt securities - 2,180,294 - 2,180,294
Investment contracts with guaranteed and fixed terms and conditions - 520,383 - 520,383

Assets and liabilities whose fair value is revealed as at 31 December 2013Level ILevel IILevel IIITotal
Assets
Financial instruments held to maturity 19,668,604 128,135 - 19,796,739
Entities measured using the equity method - EMC 47,954 - - 47,954
 
Liabilities
Investment contracts with guaranteed and fixed terms and conditions - 1,253,256 - 1,253,256