CONSOLIDATED FINANCIAL STATEMENTS for the period from 1 July 2020 to 30 June 2021 To the extent possible, Borussia Dortmund uses b) Financial assets measured at amortised cost observable market inputs to calculate the fair Financial assets that are measured at value of an asset or liability. Based on the input amortised cost are non-derivative financial factors used in the valuation techniques, the fair assets with contractual payments that are values are assigned to different levels in the fair solely payments of principal and interest on the value hierarchy: principal amount outstanding and that are held for the purposes of collecting the contractual Level 1: Quoted prices (unadjusted) in active markets cash flows, such as trade receivables and cash for identical assets and liabilities. and cash equivalents ("hold" business model). Level 2: Inputs other than quoted prices included in Cash and cash equivalents primarily include Level 1 that are observable for the asset or liability, cash-in-hand, cheques and demand deposits either directly (i.e., the price) or indirectly (i.e., can with banks, which are subject to an insignificant be derived from the price). risk of changes in value. Level 3: Unobservable inputs of the asset or liability. After initial recognition, these financial assets are If the inputs used to measure the fair value of an asset measured at amortised cost using the effective or liability can be categorised to different levels of interest method less loss allowances. Gains and the fair value hierarchy, the fair value measurement losses are recognised in the consolidated net is categorised in its entirety in the same level of the profit when the loans and receivables are fair value hierarchy as the lowest level input that is impaired or derecognised. The interest effect significant to the entire measurement. Borussia resulting from the application of the effective Dortmund recognises reclassifications between interest rate method and currency translation different levels of the fair value hierarchy at the end effects are also recognised in profit or loss. of the reporting period in which the change occurs. c) Financial assets measured at fair value a) Financial assets measured at fair value through other comprehensive income through profit or loss Financial assets that are measured at fair value Financial assets measured at fair value through through other comprehensive income are profit or loss include financial assets whose cash non-derivative financial assets with contractual flows do not comprise solely payments of payments that are solely payments of principal principal and interest on the principal amount and interest on the principal amount outstanding outstanding. This also includes financial assets and that are held for the purposes of collecting that are not held in either the "hold" or "hold and the contractual cash flows and selling financial sell" business models. Gains and losses resulting assets, for instance to meet predefined liquidity from these financial assets are recognised targets ("hold and sell" business model). This through profit or loss. category also includes equity instruments that 187