33. Fair value measurement

31/12/2014

    Fair value hierarchy
 NOTE Carrying amount Fair valueLevel 1Level 2
Financial assets          
Loans granted 17,21 3 3  -  3
Embedded derivatives and hedging instruments 17,21 1 038 1 038   1 038
    1 041 1 041  -  1 041
Financial liabilities          
Bonds 24 4 161 4 138 4 138  - 
Loans 24 6 491 6 492  -  6 492
Borrowings 24 5 5  -  5
Finance lease 26,27 116 120  -  120
Embedded derivatives and hedging instruments 26,29 2 619 2 619  -  2 619
    13 392 13 374 4 138 9 236

31/12/2013

    Fair value hierarchy
(restated data)NOTE Carrying amount Fair value Level 1  Level 2 
Financial assets          
Loans granted 17,21 11 11  -  11
Embedded derivatives and hedging instruments 17,21 277 277  -  277
    288 288  -  288
Financial liabilities          
Bonds 24 1 718 1 730 1 730  - 
Loans 24 5 638 5 639  -  5 639
Borrowings 24 1 1  -  1
Finance lease 26,27 102 104  -  104
Hedging instruments 26,29 139 139  -  139
    7 598 7 613 1 730 5 883

For other classes of financial assets and liabilities presented in note 32.1 fair value represents their carring amount.

33.1. Methods applied in determining fair value (fair value hierarchy)

Financial liabilities due to loans, bonds, finance lease and liabilities and receivables for borrowings are measured at fair value using discounted cash flows method. Discount factors are calculated based on market interest rates according to quotations of 1- month, 3-months and 6-months interest rates increased by proper margins for particular financial instruments. For the majority as at 31 December 2014 and as at 31 December 2013 1-month interest rate quotations were applied.

 31/12/201431/12/2013
WIBOR 2.0800% 2.6100%
EURIBOR 0.0180% 0.2160%
LIBOR USD 0.1713% 0.1677%
PRIBOR 0.2500% 0.2900%
LIBOR CAD 1.1500% 1.2217%
VILIBOR 0.1200% 0.2800%

As at 31 December 2014 and as at 31 December 2013 the Group held unquoted shares in entities, for which fair value cannot be reliably measured, due to the fact that there are no active markets for these entities and no comparable transactions in the same type of instruments were noted. The value of shares of this entities was recognized in the consolidated statement of financial position for 2014 and 2013 of PLN 40 million at acquisition cost less impairment allowances.

During the reporting period and comparative period there were no reclassifications of financial instruments in Group between Level 1 and 2 of fair value hierarchy.