16.3.1. METHODS APPLIED IN DETERMINING FAIR VALUE (FAIR VALUE HIERARCHY)

Financial liabilities due to loans, bonds, liabilities and receivables for borrowings are measured at fair value using discounted cash flows method. Discount rates 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 individual financial instruments.

In the item financial assets measured at fair value through other comprehensive income, quoted/unquoted shares not held for trading are included. For shares unquoted on active market for which there are no observable inputs, fair value determined on the basis of expected discounted cash flows was applied.

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