Fair value measurement

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)NoteLevel 1Level 2Level 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
Total assets   284,963 13,636 - 298,599
Total liabilities   - - - -

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.