Notes to Consolidated Financial Statements continued Thousands of Georgian Lari 28. Fair Value Measurements continued Fair value of financial instruments that are carried in the financial statements not at fair value Set out below is a comparison by class of the carrying amounts and fair values of the Group’s financial instruments that are carried in the financial statements. The table does not include the fair values of non-financial assets and non-financial liabilities, or fair values of other smaller financials assets and financial liabilities, fair values of which are materially close to their carrying values. Carrying Fair Unrecognised value value gain (loss) 2018 2018 2018 Financial assets Cash and cash equivalents 1,215,799 1,215,799 – Amounts due from credit institutions 1,305,216 1,305,216 – Loans to customers and finance lease receivables 9,397,747 9,368,237 (29,510) Financial liabilities Client deposits and notes 8,133,853 8,129,794 4,059 Amounts owed to credit institutions 2,994,879 2,994,879 – Debt securities issued 1,730,414 1,753,936 (23,522) Total unrecognised change in unrealised fair value (48,973) Carrying Fair Unrecognised Carrying Fair Unrecognised value value loss value value loss 2017 2017 2017 2016 2016 2016 Financial assets Cash and cash equivalents 1,582,435 1,582,435 – 1,573,610 1,573,610 – Amounts due from credit institutions 1,225,947 1,225,947 – 1,054,983 1,054,983 – Loans to customers and finance lease receivables 7,690,450 7,822,351 131,901 6,648,482 6,725,662 77,180 Financial liabilities Client deposits and notes 6,712,482 6,716,763 (4,281) 5,382,698 5,388,768 (6,070) Amounts owed to credit institutions 3,155,839 3,155,839 – 3,470,091 3,470,091 – Debt securities issued 1,709,152 1,720,748 (11,596) 1,255,643 1,314,400 (58,757) Total unrecognised change in unrealised fair value 116,024 12,353 The following describes the methodologies and assumptions used to determine fair values for those financial instruments which are not already recorded at fair value in the consolidated financial statements. Assets for which fair value approximates carrying value For financial assets and financial liabilities that are liquid or have a short-term maturity (less than three months), it is assumed that the carrying amounts approximate to their fair value. This assumption is also applied to demand deposits, savings accounts without a specific maturity and variable rate financial instruments. Fixed rate financial instruments The fair value of fixed rate financial assets and liabilities carried at amortised cost are estimated by comparing market interest rates when they were first recognised with current market rates offered for similar financial instruments. The estimated fair value of fixed interest-bearing deposits is based on discounted cash flows using prevailing money- market interest rates for debts with similar credit risk and maturity. 276 Annual Report 2018Bank of Georgia Group PLC