F.12. Financial liabilities
| Book value | Book value | Book value | |
|---|---|---|---|
| (CZK million) | 31. 12. 2014 | 31. 12. 2013 restated | 1. 1. 2013 restated |
| Financial liabilities at fair value through profit or loss | 3,203 | 1,991 | 2,371 |
| Financial liabilities at fair value through profit or related to investment contracts | – | 155 | 137 |
| Financial derivatives | 3,173 | 1,751 | 2,234 |
| Other | 30 | 85 | – |
| Financial liabilities at amortised cost | 86,360 | 78,260 | 67,417 |
| Financial liabilities at amortised cost related to investment contracts | 80,685 | 72,620 | 63,886 |
| Bonds and Loans | 500 | 503 | 504 |
| Net asset value attributable to unit holders | 1,367 | 1,151 | 312 |
| Other | 3,808 | 3,986 | 2,715 |
| Total | 89,563 | 80,251 | 69,788 |
| Current portion | 31,479 | 29,830 | 5,863 |
| Non-current portion | 58,084 | 50,421 | 63,925 |
Of which relates to Transformed fund:
| Book value | Book value | |
|---|---|---|
| (CZK million) | 31. 12. 2014 | 31. 12. 2013 |
| Financial liabilities at fair value through profit or loss | 1,032 | 419 |
| Financial liabilities at fair value through profit or related to investment contracts | – | 149 |
| Financial derivatives | 1,032 | 270 |
| Financial liabilities at amortised cost | 80,672 | 72,620 |
| Financial liabilities at amortised cost related to investment contracts | 80,672 | 72,620 |
| Total | 81,704 | 73,039 |
| Current portion | 30,421 | 28,497 |
| Non-current portion | 51,283 | 44,542 |
Other financial liabilities at amortized cost consist of Deposits received from reinsurers of CZK 1,403 milion (2013: CZK 1,403 milion), bank loans to CITY EMPIRIA a.s. of CZK 1,032 million (2013: CZK 1,044 million), to Solitaire a.s. of CZK 306 million (2013: CZK 320 million), to Apollo a.s. of CZK 805 million (2013: 0) and to Pařížská 26 s.r.o. of 263 million (2013: CZK 260 million), and repurchase agreements (2014: 0, 2013: CZK 959 million).
As collateral to the loans, the Group pledged the real estate companies’ investment property, other receivables, fixed assets, shares, receivables from bank accounts, service charge account and claims arising from lease agreements, existing and future claims arising from the insurance agreement of the companies.
In December 2012, at maturity date, the Group paid up the 250 fixed-coupon bonds in the nominal value of CZK 500 million and issued a new emission in the same nominal value. The new emission of bonds bear an interest rate of 1.83% p.a. Transaction costs related to the bond issue amounted to CZK 2.5 million. The bond is quoted on secondary market of Prague Stock Exchange and its maturity will be in the year 2017.
Fair value measurement of Financial liabilities at fair value through profit or loss as at the end of the reporting period:
| 31. 12. 2014 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at fair value through profit or loss | – | 3,203 | – | 3,203 |
| Financial derivatives | – | 3,173 | – | 3,173 |
| Other FVTPL | – | 30 | – | 30 |
| Total | – | 3,203 | – | 3,203 |
| 31. 12. 2013 restated | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at fair value through profit or loss | – | 1,991 | – | 1,991 |
| Financial liabilities at fair value through profit or related to investment contracts | – | 155 | – | 155 |
| Financial derivatives | – | 1,751 | – | 1,751 |
| Other FVTPL | – | 85 | – | 85 |
| Total | – | 1,991 | – | 1,991 |
| 1. 1. 2013 restated | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at fair value through profit or loss | – | 2,371 | – | 2,371 |
| Financial liabilities at fair value through profit or related to investment contracts | – | 137 | – | 137 |
| Financial derivatives | – | 2,234 | – | 2,234 |
| Total | – | 2,371 | – | 2,371 |
Of which relates to Transformed fund:
| 31. 12. 2014 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at fair value through profit or loss | – | 1,032 | – | 1,032 |
| Financial derivatives | – | 1,032 | – | 1,032 |
| Total | – | 1,032 | – | 1,032 |
| 31. 12. 2013 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at fair value through profit or loss | – | 419 | – | 419 |
| Financial liabilities at fair value through profit or related to investment contracts | – | 149 | – | 149 |
| Financial derivatives | – | 270 | – | 270 |
| Total | – | 419 | – | 419 |
There were no significant transfers between Levels of fair value measurement categories in 2014 and 2013 for the Group and also for Transformed fund.
Fair value measurement of Financial liabilities at amortised cost as at the end of the reporting period:
| 31. 12. 2014 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at amortised cost | – | 5,684 | 80,685 | 86,369 |
| Financial liabilities at amortised cost related to investment contracts | – | – | 80,685 | 80,685 |
| Bonds and Loans | – | 510 | – | 510 |
| Net asset value attributable to unit holders | – | 1,366 | – | 1,366 |
| Other | – | 3,808 | – | 3,808 |
| Total | – | 5,684 | 80,685 | 86,369 |
| 31. 12. 2013 restated | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at amortised cost | – | 5,640 | 72,620 | 78,260 |
| Financial liabilities at amortised cost related to investment contracts | – | – | 72,620 | 72,620 |
| Bonds and Loans | – | 503 | – | 503 |
| Net asset value attributable to unit holders | – | 1,151 | – | 1,151 |
| Other | – | 3,986 | – | 3,986 |
| Total | – | 5,640 | 72,620 | 78,260 |
Of which relates to Transformed fund:
| 31. 12. 2014 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at amortised cost | – | – | 80,672 | 80,672 |
| Financial liabilities at amortised cost related to investment contracts | – | – | 80,672 | 80,672 |
| Total | – | – | 80,672 | 80,672 |
| 31. 12. 2013 | ||||
|---|---|---|---|---|
| (CZK million) | Level 1 | Level 2 | Level 3 | Total |
| Financial liabilities at amortised cost | – | – | 72,620 | 72,620 |
| Financial liabilities at amortised cost related to investment contracts | – | – | 72,620 | 72,620 |
| Total | – | – | 72,620 | 72,620 |
Generally, if available and if the market is defined as active, fair value is equal to the market price.
The fair value is determined primarily on the basis of the income approach using discounting techniques.
In particular, the fair value of debt instruments issued by the Group are valued using discounted cash flow models based on the current marginal rates of funding of the Group for similar types of loans, with maturities consistent with the maturity of the debt instruments subject to valuation.
The fair value of financial liabilities at amortized cost related to investment contracts can be assumed to be equal to its carrying amount, since the funds participants have the right in any moment to withdraw the money from their accounts after one years of being members, and the overwhelming majority of the funds members already fulfil such condition. The carrying amount can therefore be considered a reasonable approximation of fair value.
The fair value of such liabilities is therefore classified as level 3.
There were no significant transfers between Levels of fair value measurement categories in 2013 and 2014 both for the Group and also for Transformed fund.