Fair value estimation
For those financial assets and liabilities, which have been recognized at fair value in the Consolidated statement of financial position, the measurement hierarchy and valuation methods described below have been applied. There have been no transfers between fair value levels.
Quoted unadjusted prices at reporting date in active markets. The market prices are readily and regularly available from an exchange, dealer, broker, market data provider, pricing service or regulatory agency. The quoted market price used for financial assets is the current bid price. Level 1 financial instruments include equity and interest-bearing assets classified as financial assets at fair value through other comprehensive income.
The fair value of financial instruments in Level 2 is determined using valuation techniques. These techniques utilize observable market data readily and regularly available from an exchange, dealer, broker, market data provider, pricing service or regulatory agency. Level 2 financial instruments include over-the-counter (OTC) derivatives classified as financial assets and liabilities at fair value through profit or loss or at fair value through other comprehensive income, when these qualify for hedge accounting.
A financial instrument is categorized into Level 3 if the calculation of the fair value cannot be based on observable market data. There were no changes in Level 3 instruments for the 12 months ended December 31, 2019.
Classification of financial assets and liabilities as at December 31, 2019: