20. Financial instruments by category and fair value hierarchy

Financial instruments by category

in thousand EUR	at amortized costs	at fair value through OCI	Total
31 December 2023
Assets
Cash and cash equivalents	1 648	–	1 648
Trade and other receivables¹	11 571	–	11 571
Non-current loan to associates	746	–	746
Non-current financial assets	1 922	29	1 951
Total financial assets	15 887	29	15 916
¹ Not included are receivables due from tax authorities of EUR 1.4 million.

in thousand EUR	at amortized costs	at fair value through OCI	Total
31 December 2022
Assets
Cash and cash equivalents	3 022	–	3 022
Trade and other receivables¹	14 090	–	14 090
Non-current loan to associates	423	–	423
Non-current financial assets	1 513	27	1 540
Total financial assets	19 048	27	19 075
¹ Not included are receivables due from tax authorities of EUR 2.1 million.

in thousand EUR	2023	2022
Liabilities at amortized costs
Trade and other payables¹	15 089	16 246
Loans, interest payables and legal liabilities²	49 719	47 568
Lease liabilities	864	1 598
Total financial liabilities	65 672	65 412
¹ Not included are accruals and payables due to tax authorities of EUR 6.9 million (2022: EUR 4.8 million).
² The fair value of the interest bearing long-term liabilities with a fixed interest rate (level 2) is EUR 27.5 million (2022: EUR 36.5 million).

Accounting policies

Borrowings are classified as current liabilities unless Precious Woods has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. They are initially recorded at fair value, net of transaction costs, and subsequently measured at amortized cost according to the effective interest rate method.

Cash and cash equivalents comprise cash at bank and in hand and short-term highly liquid deposits with an original maturity of three months or less. They are recorded at nominal value. Bank overdrafts are presented within current financial liabilities.

Fair value hierarchy

The carrying amounts of financial instruments correspond approximately to their fair value. The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1 – quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2 – other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3 – techniques that use inputs, which have a significant effect on the recorded fair value, and which are not based on observable market data

Assets measured at fair value

in thousand EUR	31 December 2023	Level 1	Level 2	Level 3
Non-current financial assets	29	–	–	29
Biological assets	18 554	–	–	18 554
Land	54 907	–	54 907	–
Total assets measured at fair value	73 490	–	54 907	18 583

in thousand EUR	31. Dezember 2022	Level 1	Level 2	Level 3
Non-current financial assets	27	–	–	27
Biological assets	19 931	–	–	19 931
Land	47 715	–	47 715	–
Total assets measured at fair value	67 673	–	47 715	19 958

Reconciliation of fair value measurement of level 3 assets

in thousand EUR	2023	2022
At 1 January	19 958	14 382
Gain from changes in fair value from biological assets	–2 485	4 075
Currency effects	1 110	1 501
At 31 December	18 583	19 958