Note 10. Current financial assets and Cash and cash equivalents
| As of December 31, 2016 | Carrying amount | Unrealized Gains/(Losses) |
Estimated fair value |
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Current financial assets |
36,592 | — | 36,592 | |||||||||
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Cash and cash equivalents |
254,567 | — | 254,567 | |||||||||
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Current financial assets and cash and cash equivalents |
291,159 | — | 291,159 | |||||||||
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| As of December 31, 2017 | Carrying amount | Unrealized Gains/(Losses) |
Estimated fair value |
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| $ in thousands | ||||||||||||
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Current financial assets |
40,602 | — | 40,602 | |||||||||
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Cash and cash equivalents |
256,380 | — | 256,380 | |||||||||
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Current financial assets and cash and cash equivalents |
296,982 | — | 296,982 | |||||||||
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10.1 Current financial assets
Accounting policies
Current financial assets that are measured at fair value through profit or loss in accordance with IAS 39 include the following:
| • | Financial assets including embedded derivatives for which Cellectis elected to designate at fair value through profit or loss; |
| • | Financial assets managed on a fair value basis; and |
| • | Derivative instruments that are not documented in hedging relationships. |
IFRS 13 (Fair Value Measurement) requires counterparty and own credit risk to be taken into account when measuring the fair value of financial instruments. This risk is estimated on the basis of observable, publicly-available statistical data.
Details of current financial assets
Current financial assets are measured at fair value through profit or loss and are classified as follows within the fair value hierarchy:
| • | Instruments classified under level 1 are measured with reference to quoted prices in active markets; they consist of notes indexed to equity index. Their nominal value amount to $40.3 million and their fair value amount to $39.7 million as of December 31, 2017. |
Instruments classified under level 2 are measured with reference to observable valuation inputs; they consist in zero-premium accumulator. Their nominal value amount to $0.6 million and their fair value amount to $0.6 million as of December 31, 2017.
10.2 Cash and cash equivalents
Accounting policy
Cash and cash equivalents are held for the purpose of meeting short-term cash commitments rather than for the purpose of investment or for other purposes. They are readily convertible into a known amount of cash and are subject to an insignificant risk of changes in value. Cash and cash equivalents include cash, bank accounts, money market funds and fixed bank deposits that meet the definition of a cash equivalent. Cash equivalents are fair valued at the end of each reporting period.
Details of cash and cash equivalents
| As of December 31, | As of December 31, | |||||||
| 2016 | 2017 | |||||||
| $ in thousands | ||||||||
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Cash and bank accounts |
222,089 | 219,368 | ||||||
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Money market funds |
12,451 | 13,026 | ||||||
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Fixed bank deposits |
20,028 | 23,986 | ||||||
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Total cash and cash equivalents |
254,568 | 256,380 | ||||||
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Money market funds earn interest and are refundable overnight. Fixed bank deposits have fixed terms that are less than three months or are readily convertible to a known amount of cash.