Investor Presentaiton
132
A.P. Møller-Mærsk A/S Annual Report 2020
Financials
Parent company financial statements
Notes index
Note 13 Financial instruments by category - continued
Table 13.2
Movement during the year in level 3
Carrying amount 1 January 2019
Carrying amount 31 December 2019
Disposal
Gains/losses recognised in other comprehensive income
Carrying amount 31 December 2020
Note 14 Pledges
After separating the drilling activities in 2019, the
company holds no property, plant and equipment.
Pledges
Vessels and containers, etc., owned by subsidiaries with
a carrying amount of USD 0.7bn (USD 1.4bn) have been
pledged as security for loans of USD 0.3bn (USD 0.6bn).
Non-listed shares Total financial
Table 13.2
assets
Equity investments
(FVOCI)
2
2
2
2
431
4
3
1
Amounts in USD million
==
Financial instruments measured at fair value
Financial instruments measured at fair value can be
divided into three levels:
Level 1 - Quoted prices (unadjusted) in active markets
for identical assets or liabilities
Level 2 - Inputs other than quoted prices included
within level 1 that are observable for the
asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices)
Level 3 - Inputs for the asset or liability that are not
based on observable market data.
Fair value of listed shares falls within level 1 of the fair
value hierarchy. Non-listed shares and other securities
fall within level 3 of the fair value hierarchy.
Fair value of derivatives falls mainly within level 2 of the fair
value hierarchy and is calculated on the basis of observable
market data as of the end of the reporting period.
Fair value of level 3 assets and liabilities is primarily
based on the present value of expected future cash
flows. A reasonably possible change in the discount
rate is not estimated to affect the company's profit
or equity significantly.
Financial instruments carried at amortised cost
Fair value of the short-term financial assets and other
financial liabilities carried at amortised cost is not mate-
rially different from the carrying amount. In general, fair
value is determined primarily based on the present value
of expected future cash flows. Where a market price was
available, however, this was deemed to be the fair value.
Fair value of listed issued bonds is within level 1 of the
fair value hierarchy. Fair value of the remaining borrowing
items is within level 2 of the fair value hierarchy and is
calculated on the basis of discounted interests and in-
stalments.View entire presentation