IFRS 7 requires financial instruments recognized at fair value in the statement of financial position to be classified on the basis of a hierarchy that reflects the significance of the inputs used in determining fair value. This hierarchical classification applies the following levels:
- Level 1 – quoted prices in active markets for the asset or liability being measured
- 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) on the market
- Level 3 – inputs that are not based on observable market data
The following table provides the fair value hierarchy, at 31 December 2013, of assets and liabilities measured at fair value on a recurring basis:
|(€ thousand)||Note||Level 1||Level 2||Level 3||Total|
|Assets at fair value:|
|Investments in other companies (available for sale) recognized at fair value directly in equity or through profit and loss||(11)||284,963||13,636||-||298,599|
In 2013, there were no transfers between levels in the fair value hierarchy.
In relation to the fair value measurement of the investment in Fin. Priv. S.r.l. of €13,636 thousand, and classified as Level 2 in the hierarchy, see Note 11.