Annual Report Gorenje Group 2009

anticipated reversionary increases, it is assumed that all notices, and when appropriate counternotices,
have been served validly and within the appropriate time.
(iv) Investments in equity and debt securities
The fair value of financial assets at fair value through profit or loss, held-to-maturity investments and
available-for-sale financial assets is determined by reference to their quoted closing bid price at the
reporting date. The fair value of held-to-maturity investments is determined for disclosure purposes
only.
(v) Trade and other receivables
The fair value of trade and other receivables is estimated as the present value of future cash flows,
discounted at the market rate of interest at the reporting date.
Trade and other receivables are not discounted due to maturity. Impairment loss to fair value is
considered.
(vi) Derivatives
The fair value of derivatives is estimated as the present value of estimated future cash flows, taking
into account the market value of equivalent derivatives at the reporting date and using market interest
rates for similar derivatives at the reporting date.
The fair value of financial instruments is determined on the basis of data provided by Reuters. The
decisive values are those of the opposite forward exchange transactions with equal maturities effective
at the reporting date. The fair value of forward exchange transactions at the reporting date is the
difference between the value of actually concluded forward exchange transactions and the value of
opposite forward exchange transactions at the reporting date, taking into consideration equal maturities
of the individual forward exchange transactions.
Interest rate swaps are used to hedge against fluctuations in the variable interest rate EURIBOR.
Decisive are the values of interest transactions with equal maturities effective at the date of the
statement of financial position. The fair value of interest rate swaps at the date of the statement of
financial position is the discounted difference between the cash flow for interest under the interest rate
swap contracts and the cash flow for interest under equivalent interest rate swap contracts at the date
of the statement of financial position.
(vii) Non-derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of
future principal and interest cash flows, discounted at the market rate of interest at the reporting date.
In respect of the liability component of convertible notes, the market rate of interest is determined by
reference to similar liabilities that do not have a conversion option. For finance leases the market rate
of interest is determined by reference to similar lease agreements.
Loans and borrowings are measured, on the basis of recalculation, at effective interest rates that
insignificantly differ from the contractual interest rates. Therefore the contractual interest rate is used in
calculations.
114
Annual Report Gorenje Group 2009