Notes to the consolidated financial statements of Aegon N.V.  Note 3 166 Trust pass-through securities, subordinated borrowings and other borrowings Fair value hierarchy Significant transfers between Level I and II 1  The investments for account of policyholders included in the table above represents those investments carried at fair value through profit or loss.  2  Total borrowings on the statement of financial position contain borrowings carried at amortized cost that are not included in the above schedule.  Aegon’s policy is to record transfers of assets and liabilities between Level I and Level II at their fair values as of the beginning of each  reporting period. During 2013, the amount of assets transferred from Level I to Level II classification was EUR 2 million. During 2013,  the amount of assets and liabilities transferred from Level II to Level I classification was EUR 473 million. Transfers are identified based  on transaction volume and frequency which are indicative of an active market. The table below provides an analysis of assets and liabilities recorded at fair value on a recurring basis by level of  the fair value hierarchy: Trust pass-through securities, subordinated borrowings and other borrowings are either carried at fair value (if they are designated as  financial liabilities at fair value through profit or loss) or amortized cost (with fair value being disclosed in the notes to the consolidated  financial statements). For the determination of the fair value of these instruments, the level hierarchy as described by IFRS is used.  The preferred method of obtaining the fair value of the fair value option bonds is the quoted price (Level I). In case markets are less  liquid or the quoted prices are not available, an internal model is used, using parameters which are market observable (Level II). Aegon  uses a discounted cash flow method including yield curves such as deposit rates, floating rate and 3-month swap rates. In addition,  Aegon includes own credit spread based on Aegon’s credit default swap curve. Level I Level II Level III Total 2013 Assets carried at fair value Available­for­sale investments Shares 202 262 322 787 Debt securities 20,815 64,184 3,162 88,162 Money market and other short-term instruments - 5,524 - 5,524 Other investments at fair value 25 312 826 1,163 21,043 70,282 4,310 95,635 Fair value through profit or loss Shares 1,120 130 - 1,250 Debt securities 64 1,268 17 1,350 Money market and other short-term instruments 95 354 - 449 Other investments at fair value - 567 1,217 1,784 Investments for account of policyholders  1) 99,040 63,008 1,989 164,037 Derivatives 69 13,134 328 13,531 Investments in real estate - - 1,532 1,532 Investments in real estate for policyholders - - 996 996 100,388 78,461 6,079 184,929 Revalued amounts Real estate held for own use - - 288 288 ­ ­ 288 288 Total assets at fair value 121,431 148,744 10,677 280,852 Liabilities carried at fair value Investment contracts for account of policyholders 12,872 19,641 114 32,628 Borrowings  2) 517 500 - 1,017 Derivatives 24 10,383 1,431 11,838 Total liabilities at fair value 13,413 30,524 1,545 45,482 Annual Report 2013