Note 02
Financial risk management (continued)
The fair value of financial instruments traded
in active markets (such as publicly traded
derivatives, and trading and available‑for‑sale
securities) is based on quoted market prices at the
end of the reporting period. The quoted market
price used for financial assets held by the Group
is the current bid price. These instruments are
included in level 1.
The fair value of forward exchange contracts
is determined using forward exchange
market rates at the end of the reporting
period. These instruments are included in
level 2 and comprise debt investments and
derivative financial instruments. In the
circumstances where a valuation technique
for these instruments is based on significant
unobservable inputs, such instruments are
included in level 3.
If one or more of the significant inputs is not
based on observable market data, the instrument
is included in level 3. This is the case for unlisted
equity securities.
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