NOTE 12
FINANCIAL RISK MANAGEMENT (CONTINUED)
Fair Value
30 June 2013
Notes
Carrying
Value
$’000
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
Non financial assets
Designated at fair value
Infrastructure assets
8(c)
4,046,235
-
- 4,046,235 4,046,235
Total non financial assets
4,046,235
-
- 4,046,235 4,046,235
Financial assets
Fair value hedging instruments
Foreign exchange forward
contracts used for hedging
12(a)
100
-
100
-
100
Loans and receivables
Trade and other receivables
6(b)
95,701
-
-
-
95,701
Cash and cash equivalents
6(a)
217,375
-
-
-
217,375
Total financial assets
313,176
-
100
-
313,176
Financial liabilities
Fair value - hedging instruments
Interest rate swaps used for hedging 12(a)
7,981
-
7,981
-
7,981
Other financial liabilities
Interest bearing liabilities
6(d)
1,080,140
-
-
- 1,080,140
Trade payables
6(c)
94,132
-
-
-
94,132
Finance lease liabilities
6(e)
400
-
-
-
400
Total financial liabilities
1,182,653
-
7,981
- 1,182,653
Level 1:
The fair value of 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. These instruments are included in level 1.
Level 2:
The fair value of instruments that are not trad-
ed in an active market (for example, over-the-counter
derivatives) is determined using valuation techniques
which maximise the use of observable market data and
rely as little as possible on entity specific estimates. If
all significant inputs required to fair value an instrument
are observable, the instrument is included in level 2.
Level 3:
If one or more of the significant inputs is not
based on observable market data, the instrument is
included in level 3.
Disclosed fair values
The carrying amounts of trade receivables and payables,
bonds, banking facilities, cash and short term deposits
equates approximately to their fair values due to their
nature and are carried at amortised cost.
There were no transfers between levels 1, 2 and 3 for
recurring fair value measurements during the current
or the previous financial year. The Group’s policy is to
recognise transfers into and transfers out of fair value
hierarchy levels as at the end of the reporting period.
(ii) Valuation techniques used to determine
fair values
Specific valuation techniques used to value financial
instruments include:
•
•
The fair value of interest rate swaps is calculated
as the present value of the estimated future
cash flows based on observable yield curves. The
present values and discounted rates used were
adjusted for counterparty and own credit risk and
is not considered a significant input.
•
•
The fair value of forward foreign exchange
contracts is determined using forward exchange
rates at the balance sheet date.
•
•
The fair value of infrastructure assets is determined
using discounted cash flow projections based on
reliable estimates of future cash flows.
(d) Fair value measurements (continued)
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