Note 18 Financial assets and liabilities – categories and fair value

Carrying amounts on financial instruments are recognised in the balance sheet according to the following tables.

2023-12-31			Total carrying amount
Financial assets	-	9	9
Non-current receivables	-	66	66
Accounts receivable	-	1,464	1,464
Cash and cash equivalents	-	272	272
Other receivables	-	-	-
Total	-	1,811	1,811
Non-current interestbearing liabilities	52	2,487	2,539
Current interest-bearing liabilities	34	2,212	2,246
Accounts payable	-	981	981
Other liabilities¹	4	-	4
Total	90	5,680	5,770
¹ Includes derivatives measuered at fair value through profit or loss.

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2022-12-31			Total carrying amount
Financial assets	-	10	10
Non-current receivables	-	85	85
Accounts receivable	-	1,326	1,326
Cash and cash equivalents	-	376	376
Other receivables	-	-	-
Total	-	1,796	1,796
Non-current interestbearing liabilities	207	2,537	2,744
Current interest-bearing liabilities	59	1,837	1,896
Accounts payable	-	957	957
Other liabilities	-	8	8
Total	266	5,338	5,604

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	2023-12-31			2022-12-31
	Carrying amount	Level 2	Level 3	Carrying amount	Level 2	Level 3
Derivatives measured at fair value through profit and loss	-	-	-	1	1	-
Total financial assets at fair value per level	-	-	-	1	1	-
Derivatives measured at fair value through profit or loss	4	4	-	0	0	-
Contingent considerations	86	-	86	266	-	266
Total financial liabilities at fair value per leve	90	4	86	266	0	266
The fair value and carrying amount are recognized in the balance sheet as shown in the table above. For currency contracts and embedded derivatives, the fair value is determined on the basis of observable market data, level 2. For conditional purchase considerations, cash flow analyses, which are not based on observable market data, are carried out, level 3. For the Group's other financial assets and liabilities fair value is estimated to be the same as the carrying amount.

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Contingent considerations	2023	2022
Opening carrying amount	266	349
Acquisitions during the year	5	21
Revaluation through profit and loss	2	4
Consideration paid	-17	-31
Reversed through profit and loss	-147	-101
Interest expenses	-8	5
Currency exchange differences	-15	19
Closing carrying amount	86	266

Accounting principle

Derivatives and currency hedging
Foreign currency exposure related to future contractual and forecasted flows is hedged with forward exchange contracts, swaps and currency clauses in customer and supplier contracts. An embedded derivative, for example a currency clause, is disclosed separately unless closely related to its host contract. Derivatives are initially recognised at fair value, so transaction costs are charged to profit or loss for the period. After the initial recognition, the derivative instrument is measured at fair value. Neither futures, swaps nor embedded derivatives in currency clauses are reported as hedging at this time. Increases and decreases in value are recognised as income or expense in operating profit.

Hedging of the Group's net investment in foreign operations
The Group has taken out loans denominated in foreign currency relating to the acquisition of foreign subsidiaries in order to manage the exposure in net investment. The Group applies the hedge accounting requirements of IFRS 9. The Group documents, at the inception of the hedge, the relationship between hedged items (net investments) and hedging instruments (loan in foreign currency), as well as its risk management objective and strategy for undertaking various hedge transactions. Hedge effectiveness is also documented on an ongoing basis regarding the financial relationship between the two items and the hedging ratio. Any gain or loss on the effective portion of the hedge (100%) is reported in equity through other comprehensive income. Gains and losses that have been accumulated in equity are taken to profit or loss when the foreign operation is divested as a portion of the gain or loss on disposal.