UPM Annual Report 2019

5.3 Financial assets and liabilities by category

Financial assets and liabilities by category at the end of 2018

EQUITY INSTRUMENTS AT FAIR VALUE THROUGH OCI

DERIVATIVES UNDER HEDGE ACCOUNTING

FINANCIAL ASSETS AND LIABILITIES AT AMORTISED COST

Financial assets and liabilities recognised in the balance sheet include cash and cash equivalents, loans and other financial receivables, investments in securities, trade receivables, trade payables, loans, bank overdrafts and derivatives. Classification of financial assets into different measurement categories depends on the contractual cash flow characteristics and the business model for managing the financial asset. The measurement

category of each financial asset is determined at inception. Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right in all circumstances to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

FAIR VALUE THROUGH PROFIT AND LOSS

EURm

TOTAL 2,159

Energy shareholdings

—

2,159

—

—

Other non-current financial assets Loans and receivables

— — — —

— — — — — — — —

—

15

15

Derivatives

163 163

—

163 178

15

Trade and other receivables Other current financial assets Loans and receivables

—

1,833

1,833

Financial assets and liabilities by category at the end of 2019

—

—

8

8

Derivatives

16 16

83 83

—

99

8

107 888

EQUITY INSTRUMENTS AT FAIR VALUE THROUGH OCI

DERIVATIVES UNDER HEDGE ACCOUNTING

FINANCIAL ASSETS AND LIABILITIES AT AMORTISED COST

Cash and cash equivalents

—

—

888

FAIR VALUE THROUGH PROFIT AND LOSS

EURm

TOTAL 2,145

16

2,159

246

2,745

5,166

Total financial assets

Energy shareholdings

—

2,145

—

—

Non-current debt Loans

Other non-current financial assets Loans and receivables

— —

— —

— —

753 753

753 753

— — — — — 17 17 — 17

— — — — — — — —

—

15

15

Derivatives

155 155

—

155 170

Other non-current financial liabilities Other liabilities 1)

15

— — —

— — — — — — — — — —

—

100

100

Trade and other receivables Other current financial assets Loans and receivables

—

1,576

1,576

Derivatives

1 1

—

1

100

101

—

8

8

Current debt Loans

Derivatives

34 34

—

51 59

—

— — — —

22

22

8

Derivatives

3 3

—

3

Cash and cash equivalents

—

1,536 3,135

1,536 5,487

22

25

2,145

189

Total financial assets

Trade and other payables

—

1,881

1,881

Non-current debt Interest-bearing liabilities

Other current financial liabilities Derivatives

— —

— —

— —

1,195 1,195

1,195 1,195

8 8

70 70 71

— —

78 78

Other non-current financial liabilities Other liabilities 1)

10

2,756

2,838

Total financial liabilities

— — —

— — — — — — — — — —

— — — — — — —

83

83

1) Consists mainly of non-current advances received and a put liability that is not estimated to mature within 12 months.

Derivatives

—

—

83

83

Current debt Interest-bearing liabilities

The carrying amounts of financial assets and financial liabilities except for non-current loans approximate their fair value. The fair value of non- current loans amounted to EUR 1,186 million (750 million) at the end of 2019. For quoted bonds, the fair values are based on the quoted market value as of 31 December. At the end of 2019, all bonds were quoted. For other non-current borrowings fair values are estimated using the expected contractual future payments discounted at market interest rates and are categorised within level 2 of the fair value hierarchy.

—

101

101

Derivatives

3 3

—

3

101

104

Trade and other payables

—

1,654

1,654

Other current financial liabilities Derivatives

4 4 7

28 28 28

— —

33 33

» Refer Note 5.2 Net debt, for further information on net debt and bonds.

3,033

3,069

Total financial liabilities

Fair value measurement hierarchy for financial assets and liabilities

1) Consists mainly of non-current advances received and a put liability that is not estimated to mature within 12 months.

EURm

2019

2018

Level 1 Level 2 Level 3

Total

Level 1 Level 2 Level 3

Total

Financial assets Derivatives, non-qualifying hedges Derivatives under hedge accounting

—

17

—

17

—

16

—

16

23

166

— 189

106

140

— 246

Energy shareholdings

—

— 2,145

2,145 2,351

—

— 2,159

2,159 2,421

23

183

2,145

106

156

2,159

Total

Financial liabilities Derivatives, non-qualifying hedges Derivatives under hedge accounting

—

7

— — —

7

—

10 56 66

— — —

10 71 81

7 7

22 29

28 36

15 15

Total

There have been no transfers between levels in 2019 and 2018.

184

185

UPM ANNUAL REPORT 2019

UPM ANNUAL REPORT 2019

CONTENTS

ACCOUNTS

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS