Page 179 - ar2012

Interest rates used in determining fair values
The interest rates used to discount the estimated cash fows were as follows:
Group and Trust
2012 2011
% %
Finance lease receivable 2.50 3.33
Security deposits 1.53 2.00
Deferred payment - 0.80
Medium term notes 1.58 – 3.98 1.10 – 2.59
Fair value hierarchy
The table below analyses fnancial instruments carried at fair value, by valuation method. The different levels have been defned as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as
prices) or indirectly (i.e., derived from prices); and
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Level 1 Level 2 Level 3 Total
Group and Trust $’000 $’000 $’000 $’000
2012
Collateral loan - (307,608) - (307,608)
Investment in debt securities - - 103,250 103,250
Derivative assets - 9,231 - 9,231
Derivative liabilities - (70,423) - (70,423)
- (368,800) 103,250 (265,550)
2011
Collateral loan - (306,468) - (306,468)
Derivative assets - 4,452 - 4,452
Derivative liabilities - (59,728) - (59,728)
- (361,744) - (361,744)
During the fnancial year ended 31 March 2012 and 31 March 2011, there were no transfers from Level 1, Level 2 or Level 3, or vice versa.
The following table shows a reconciliation from the beginning balance to the ending balance for fair value measurement in Level 3 of
the fair value hierarchy:
Investment in
debt securities
Group and Trust $’000
2012
Balance as at 1 April 2011 -
Purchases 103,250
Change in fair value recognised in Statement of Total Return -
Balance as at 31 March 2012 103,250
NOTES TO THE FINANCIAL STATEMENTS
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A DECADE OF ENABLING BUSINESSES