If there is an active market for a financial instrument (e.g. stock exchange), the fair value is expressed by the market or quoted exchange price at the balance sheet date. If no market price is available in an active market, the quoted prices in an active market of similar instruments or recognised valuation techniques are used to determine fair value. The valuation techniques used incorporate the major factors establishing a fair value for the financial instruments using valuation parameters which are derived from the market conditions as at the balance sheet date. Counterparty risk is analysed on the basis of the currently existing credit default swaps signed by the counterparties.
The fair values of other non-current receivables and financial investments held to maturity with remaining maturities of more than one year equal the present values of the payments related to the assets, taking into account the current interest rate parameters.
Most of the cash and cash equivalents, trade receivables and other receivables have short remaining maturities. Thus, their carrying amounts at the reporting date are largely equivalent to their fair values. Trade payables and other liabilities generally have short maturities; the amounts carried in the balance sheet are similar to their fair values.
Available-for-sale financial assets include shares in partnerships and corporations in the amount of €97 million (previous year €158 million). There is no active market for these instruments. Since no future cash flows can be reliably determined, the fair value cannot be determined using valuation techniques. The shares of these entities are recognised at cost. There are no plans to sell or derecognise a material number of the available-for-sale financial assets recognised as at 31 December 2009 in the near future. As in the previous year, no significant shares measured at cost were sold in the financial year. The available-for-sale financial assets measured at fair value relate to debt- and equity instruments.
The financial assets measured at fair value through profit or loss include securities to which the fair value option was applied. These are instruments not acquired for the purpose of near-term profit-making. There is an active market for these assets. The amounts are recognised at fair value.
The following table presents the methods used to determine the fair value for each class:
|Financial assets and liabilities: 2009|
|Measurement by reference to major inputs based on observable market data||Measurement by reference to major inputs not based on observable market data|
|Non-current financial assets at fair value||118||754||0|
|Current financial assets at fair value||1,605||31||0|
|Non-current financial liabilities at fair value||0||–84||0|
|Current financial liabilities at fair value||0||–57||0|
As part of selling the shares of Deutsche Postbank AG, Deutsche Post AG entered into a forward transaction with Deutsche Bank AG which falls within the scope of IAS 39.2 (g) applicable as of 31 December 2009 and was therefore not accounted for at its positive fair value. The fair value of €1,453 million was determined using significant market data (Level 2).
No assets were reclassified in the financial years 2009 and 2008.