ANNUAL REPORT 2011 - DONG Energy

fair value hierarchy of financial instruments
DKK million Quoted prices
(Level 1)
Observable inputs
(Level 2)
2011 2010
Non-observable
inputs
(Level 3)
total
Quoted prices
(Level 1)
Observable inputs
(Level 2)
Non-observable
inputs
(Level 3)
Derivative financial
instruments - 5,198 1,076 6,274 - 5,496 381 5,877
Securities 9,665 - - 9,665 7,470 - - 7,470
assets 9,665 5,198 1,076 15,939 7,470 5,496 381 13,347
Derivative financial
instruments - (7,322) (720) (8,042) - (5,630) - (5,630)
liabilities 0 (7,322) (720) (8,042) 0 (5,630) 0 (5,630)
Level 1 comprises quoted securities traded in active markets.
Level 2 comprises derivative financial instruments, where valuation
methods with observable inputs are used to measure fair
value, and with discounting to present value using a discount
rate set by DONG Energy A/S. Level 2 also comprises quoted
Categories of financial instruments
DKK million Derivative finan-
total
securities that have not been traded in the market sufficiently
for a reliable fair value to be obtained.
Level 3 comprises other derivative financial instruments in
which the value of one or more key, non-observable inputs has
been estimated and where the sum of these estimated nonobservable
inputs may affect the fair value.
cial instruments
(assets)
2011 2010
Derivative financial
instruments
(assets)
Derivative financial
instruments
(assets)
Derivative financial
instruments
(assets)
At 1 January 381 - - (96)
Gains and losses recognised in profit for the year as revenue 696 (701) (64) 96
Purchases 8 (28) (6) -
Other transfers to and from Level 3 (9) 9 451 -
at 31 December 1,076 (720) 381 0
A loss in respect of assets and liabilities that are valued based
on non-observable inputs and were still recognised in the balance
sheet at 31 December 2011 was recognised with DKK 25
million (2010: loss of DKK 19 million) in profit for the year as
revenue.
DONG ENERGY ANNUAL REPORT 2011 – parEnt COmpany finanCial statEmEnts
181
notes