36 Reclassification of Financial Assets Available for Sale to Loans

As at 1 July 2008, certain financial assets were reclassified from financial assets available for sale to loans due to the disappearance of an active market. The financial assets reclassified primarily consist of corporate debt instruments and debt instruments relating to emerging markets. The fair value as at 1 July 2008 of the financial assets reclassified amounted to CHF 14 966 million. At the date of reclassification the effective interest rate ranged from 0.8% to 9.7%, and the amount of cash flows expected to be recovered was estimated at CHF 32 658 million. In 2008, unrealised losses of CHF 740 million were recognised in equity in respect of these assets.

Further details with regard to the financial assets reclassified are as follows:

In CHF million 
Carrying amount as at 31 December
  12 09014 641
Fair value as at 31 December
  12 66412 337
Gains/losses that would have been recognised in equity if the assets had not been reclassified (excluding adjustments for income tax and policyholder participation)
  3 159 –2 259
Gains/losses recognised in profit or loss (including impairment)
Interest income