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NOTE 20
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FINANCIAL INSTRUMENTS
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|||||
|
The following is a summary of the carrying value and fair value of the Group's financial instruments and how these have been treated in the accounts. The table is the basis for further information on the Group's financial risk and refers to subsequent notes.
|
||||||
|
Financial instruments measured at amortised cost
|
||||||
|
NOK 1 000
|
Financial instruments measured at fair value through profit and loss
|
Lending and receivables
|
Financial obligation
|
Total
|
Fair value
|
|
|
Non-current assets
|
||||||
|
Other financial non-current assets
|
51 599
|
233 660
|
285 259
|
285 259
|
||
|
Total 2012
|
51 599
|
233 660
|
285 259
|
285 259
|
||
|
Total 2011
|
158 917
|
256 300
|
415 217
|
415 217
|
||
|
Current assets
|
||||||
|
Short-term receivables
|
|
1 627 010
|
|
1 627 010
|
1 627 010
|
|
|
Listed shares
|
|
3 476 584
|
|
3 476 584
|
3 476 584
|
|
|
Unlisted shares and investments in other equity instruments
|
8 699 217
|
|
8 699 217
|
8 699 217
|
||
|
Hedge funds
|
3 078 721
|
|
3 078 721
|
3 078 721
|
||
|
Investments in debt instruments
|
133 664
|
|
133 664
|
133 664
|
||
|
Bank deposits
|
1 683 997
|
|
1 683 997
|
1 683 997
|
||
|
Total 2012
|
15 388 186
|
3 311 007
|
|
18 699 193
|
18 699 193
|
|
|
Total 2011
|
13 476 441
|
3 164 030
|
|
16 640 471
|
16 640 471
|
|
|
Long-term debt
|
||||||
|
Long-term interest-bearing debt
|
|
5 283 103
|
5 283 103
|
5 283 103
|
||
|
Other long-term debt
|
|
|
350 309
|
350 309
|
350 309
|
|
|
Total 2012
|
|
|
5 633 412
|
5 633 412
|
5 633 412
|
|
|
Total 2011
|
|
|
5 909 002
|
5 909 002
|
5 909 002
|
|
|
Short-term debt
|
||||||
|
Short-term interest-bearing debt
|
|
362 440
|
362 440
|
362 440
|
||
|
Other short-term debt
|
|
|
1 855 693
|
1 855 693
|
1 855 693
|
|
|
Total 2012
|
|
|
2 218 133
|
2 218 133
|
2 218 133
|
|
|
Total 2011
|
|
|
2 923 114
|
2 923 114
|
2 923 114
|
|
|
Fair value hierachy - Financial assets and liabilities
|
||||||
|
Ferd classifies instruments measured at fair value in the balance sheet by a fair value hierachy. The hierarchy has the following levels:
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|
Level 1: Valuation based on quoted prices in active markets for identical assets without adjustments. An active market is characterised by the fact that the security is traded with adequate frequency and volume in the market. The price information shall be continuously updated and represent expected sales proceeds. Only listed shares owned by Ferd Invest are considered to be level 1 investments.
|
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|
Level 2: Investments where there are quoted prices, but the markets do not meet the requirements for being characterised as active. In addition, investments where the valuation can be fully derived from the value of other quoted prices, including the value of underlying securities, interest rate level, exchange rate etc. Financial derivatives like interest rate swaps and currency futures are also considered to be level 2 investments. Some funds in Ferd's hedge fund portfolio are considered to meet the requirements of level 2. These funds comprise composite portfolios of shares, unit trust funds, interest securities, raw materials and other negotiable derivatives. For such funds the value (NAV) is reported on a continuous basis, and the reported NAV is applied on transactions in the fund.
|
||||||
|
Level 3: All Ferd's other securities are valued on level 3. The valuation is based on valuation models where parts of the utilised information cannot be observed in the market. Securities valued on the basis of quoted prices or reported value (NAV), but where significant adjustments are required, are assessed on level 3. Shares with little or no trading, where an internal valuation is required to determine the fair value, are assessed on level 3. For Ferd this concerns all venture investments, private equity investments and funds where reported NAV need to be adjusted. A reconciliation of the movements of assets on level 3 is shown in a separate table.
|
||||||
|
The table shows at what level in the valuation hierarchy the different measurement methods for the Group's financial instruments at fair value is considered to be:
|
||||||
|
NOK 1 000
|
Level 1
|
Level 2
|
Level 3
|
Total 2012
|
||
|
Assets
|
||||||
|
Other financial non-current assets
|
51 599
|
51 599
|
||||
|
Listed shares
|
3 476 584
|
3 476 584
|
||||
|
Unlisted shares and investments in other equity instruments
|
6 448
|
8 692 769
|
8 699 217
|
|||
|
Hedge funds
|
1 600 948
|
1 477 773
|
3 078 721
|
|||
|
Investments in debt instruments
|
133 664
|
133 664
|
||||
|
Total 2012
|
3 476 584
|
1 741 060
|
10 222 141
|
15 439 785
|
||
|
NOK 1 000
|
Level 1
|
Level 2
|
Level 3
|
Total 2011
|
||
|
Assets
|
||||||
|
Other financial non-current assets
|
158 917
|
158 917
|
||||
|
Listed shares
|
2 895 122
|
|
|
2 895 122
|
||
|
Unlisted shares and investments in other equity instruments
|
9 042
|
|
6 658 405
|
6 667 447
|
||
|
Hedge funds
|
|
1 310 539
|
1 477 781
|
2 788 320
|
||
|
Investments in debt instruments
|
|
1 125 553
|
|
1 125 553
|
||
|
Total 2011
|
2 904 164
|
2 436 092
|
8 295 103
|
13 635 358
|
||
|
Specification of assets in level 3
|
||||||
|
NOK 1 000
|
Opening bal. 1 Jan. 2012
|
Purchases
|
Sales
|
Transfers from level 3
|
Recognised in P/L 2012
|
Closing bal. 31 Dec. 2012
|
|
Other financial non-current assets
|
158 917
|
- 63 578
|
- 43 740
|
51 599
|
||
|
Unlisted shares and investments in other equity instruments
|
6 658 405
|
186 454
|
- 347 180
|
- 120 380
|
2 315 470
|
8 692 769
|
|
Hedge funds
|
1 477 781
|
690 982
|
- 490 577
|
- 359 707
|
159 295
|
1 477 773
|
|
Total
|
8 295 103
|
877 436
|
- 901 335
|
- 480 087
|
2 431 025
|
10 222 142
|
|
NOK 1 000
|
Opening bal. 1 Jan. 2011
|
Purchases
|
Sales
|
Transfers from level 3
|
Recognised in P/L 2011
|
Closing bal. 31 Dec. 2011
|
|
Other financial non-current assets
|
91 921
|
66 996
|
158 917
|
|||
|
Listed shares
|
6 976
|
|
|
- 6 976
|
|
|
|
Unlisted shares and investments in other equity instruments
|
7 449 579
|
215 636
|
- 856 169
|
- 331 072
|
180 431
|
6 658 405
|
|
Hedge funds
|
584 142
|
1 521 043
|
- 689 884
|
|
62 479
|
1 477 781
|
|
Total
|
8 132 619
|
1 803 675
|
-1 546 052
|
- 338 048
|
242 910
|
8 295 103
|
|
Transfers from level 3 are mainly due to the step-by-step acquisition of Telecomputing in 2011.
|
||||||
|
Valuation of assets classified in level 3
|
||||||
|
Financial assets in level 3 include investments managed in-house, venture investments, private equity funds and hedge funds. The values at the balance sheet date are shown below.
|
||||||
|
NOK 1 000
|
2012
|
2011
|
||||
|
Industrial investments and venture investments
|
4 191 993
|
2 915 310
|
||||
|
External private equity funds
|
4 552 375
|
3 902 012
|
||||
|
Hedge funds
|
1 477 773
|
1 477 781
|
||||
|
Total
|
10 222 142
|
8 295 103
|
||||
|
Investments in unlisted shares managed in-house are valued on the basis of an earnings multiple, adjusted by a liquidity discount reduction and the addition of a control premium. The corrections are made directly on the multiple. Finally, the equity value is calculated by deducting net interest-bearing debt.
|
||||||
|
A significant part of venture investments constitutes companies with no positive cash flows. This implies a greater degree of uncertainty in the valuations of the companies. Valuations are based on international guidelines (EVCA guidelines), i.e., the lower of cost and fair value unless a transaction at a higher value has taken place.
|
||||||
|
The valuation of investments in externally managed private equity and hedge funds is based on value reports received from the funds. The hedge funds in the SI portfolio are adjusted for estimated discount on the funds based on estimates made by brokers.
|
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