Cash and cash equivalents and other financial assets

5.4 Cash and cash equivalents and other financial assets
  2016 2015
Bank deposits 10,000 10,000
Cash assets and bank account balances 11,939 13,099
Total 21,939 23,099
  2016 2015 Hierarchy level
Commercial papers 12,998 53,984 Level 2
Short-term money market funds 44,792 39,468 Level 1
Total 57,790 93,451  

Accounting principles

Cash and cash equivalents

Cash and cash equivalents in the balance sheet include cash in hand and bank deposits with an initial maturity of no more than three months. Cash and cash equivalents in the cash flow statement also include financial assets recognised in the income statement at fair value. Cash and cash equivalents are derecognised when they mature, are sold or otherwise disposed of.

Held-for-trading financial assets

This category consists of the financial assets held specifically for trading purposes. The financial assets classified in this category include short-term money market securities (certificates of deposit, commercial papers and municipality bills) and current investments in short-term fixed income funds. Financial assets recognised at fair value in the income statement are entered in the balance sheet at fair value at the settlement date. Subsequently, the financial assets are measured on each reporting day at fair value, and the change in their fair value is recognised in the income statement under finance income and costs. Derivatives are also included in this group, but are presented in the balance sheet on their own lines. Accounting principles for derivatives are disclosed in Chapter 5.6.

Available-for-sale investments

Fingrid has insignificant amounts of financing assets classified as available-for-sale investments, mainly shares in telephone companies and publicly listed shares. Available-for-sale investments are recognised at fair value, which is the market value at the closing date and thus belongs to level 1 in the fair value hierarchy. Changes in fair value are recognised through other comprehensive income in shareholders’ equity, minus taxes, until the investment is sold or otherwise disposed of, or the value of the investment is impaired, at which time the changes in fair value are reclassified in the income statement.

Financial assets are derecognised when they mature, are sold or otherwise disposed of such that their risks and revenues have been transferred.