Offsetting financial assets and financial liabilities

Accounting policies

The Group offsets financial assets and liabilities and presents them in the statement of financial position in net amounts if there is a legally enforceable right to offset the recognized amounts and an intention to settle them on a net basis or to realize a given asset and settle the liability simultaneously. In order for offsetting to be possible, a legal right may not be contingent on the occurrence of a specific future event.

The Group enters into offsetting arrangements, i.e. International Swaps and Derivatives Association Master Agreements (ISDA) and Global Master Repurchase Agreements (GMRA), which make it possible to offset financial assets and liabilities (so-called close out netting) in the event of an infringement with respect to one of the parties to the agreement. These agreements are of particular importance to mitigate the risk posed by derivative instruments, because they enable offsetting both matured liabilities (mitigating the settlement risk) and the non-matured liabilities of the parties (mitigating the pre-settlement risk). However, these agreements do not meet the requirements set out in IAS 32, because the right to offset is conditional on the occurrence of a specific future event (instances of infringement).

Exposures arising from derivatives are further secured by margin deposits provided by counterparties as part of executing CSA (Credit Support Annex).

Financial information

31.12.2017Total financial assetsDerivativesRepurchase agreements
Recognized financial assets, gross3 5032 601902
Financial liabilities subject to offsetting, gross(3)(3)-
Financial assets recognized in the statement of financial position, net3 5002 598902
Financial instruments not subject to offsetting in the financial statements2 0972 08215
Financial liabilities subject to enforceable framework agreement or similar
agreement concerning offsetting (excluding financial collateral)
1 3371 337-
Cash or securities received as collateral76074515
Net amount1 403516887

31.12.2017Total financial liabilitiesDerivativesRepurchase agreements
Recognized financial liabilities, gross2 7912 74348
Financial liabilities subject to offsetting, gross(3)(3)-
Financial assets recognized in the statement of financial position, net2 7882 74048
Financial instruments not subject to offsetting in the financial statements1 8951 895-
Financial assets subject to enforceable framework agreement or similar
agreement concerning offsetting (excluding financial collateral)
1 3371 337-
Cash or securities received as collateral558558-
Net amount89384548

31.12.2016Total financial assetsDerivativesRepurchase agreements
Recognized financial assets, gross4 9052 9052 000
Financial liabilities subject to offsetting, gross(4)(4)-
Financial assets recognized in the statement of financial position, net4 9012 9012 000
Financial instruments not subject to offsetting in the financial statements2 0962 096-
Financial liabilities subject to enforceable framework agreement or similar
agreement concerning offsetting (excluding financial collateral)
1 6981 698-
Cash or securities received as collateral398398-
Net amount2 8058052 000

31.12.2016Total financial liabilitiesDerivativesRepurchase agreements
Recognized financial liabilities, gross4 4084 202206
Financial liabilities subject to offsetting, gross(4)(4)-
Financial assets recognized in the statement of financial position, net4 4044 198206
Financial instruments not subject to offsetting in the financial statements3 2573 22334
Financial assets subject to enforceable framework agreement or similar
agreement concerning offsetting (excluding financial collateral)
1 6981 698-
Cash or securities received as collateral1 5591 52534
Net amount1 147975172