Boskalis_Annual_Report_2016

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Trade and other receivables The fair value of trade and other receivables, other than due from customers, is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date.

Fair value hierarchy Assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy as follows: ƒ Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; ƒ 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). ƒ Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). CONSOLIDATED STATEMENTS OF CASH FLOWS 3.32 The consolidated statement of cash flows is drawn up using the indirect method. Cash is defined as cash and cash equivalents including bank overdrafts as presented in the explanatory notes to the cash and cash equivalents and the interest-bearing borrowings. Cash flows are presented separately in the statement of cash flows as cash flows from operating activities, investing activities and financing activities. The cash flows in the statement of cash flows also included the cash flows, if any, related to the disposal group.

Share-based payment transactions The fair value is determined based on quoted prices.

Derivatives The fair value of derivatives is based on the estimated amount to be paid or received for a settlement of the contract as at the reporting date taking into account the actual interest rate and the credit rating of the counterparty. The fair value is based on broker quotes tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at the measurement date. Non-derivative financial liabilities Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.

ANNUAL REPORT 2016 – BOSKALIS FINANCIAL STATEMENTS 2016