N o t e s t o t h e f i n a n c i a l s t a t e m e n t s
Year ended 31 March 2015
32 Classification and fair value of financial instruments
The carrying amounts and fair values of financial assets and liabilities, including their levels in fair value hierarchy are
shown in the tables below. It does not include fair value information for financial assets and financial liabilities not
measured at fair value if the carrying amount is a reasonable approximation of fair value.
Valuation processes applied by the Group
The Group has an established control framework with respect to the measurement of fair values. This framework includes
a team that has overall responsibility for all significant fair value measurements, including Level 3 fair values.
The team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as
broker quotes, pricing services or external valuations, is used to measure fair value, then the team assesses and documents
the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of
FRS, including the level in the fair value hierarchy the resulting fair value estimate should be classified.
Fair value hierarchy
The tables below also analyse fair value measurements for financial assets and financial liabilities carried at fair value,
financial assets and financial liabilities not carried at fair value but for which fair values are disclosed, by the levels in the
fair value hierarchy based on the inputs to valuation techniques. The different levels are defined as follows:
•
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the
measurement date;
•
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: unobservable inputs for the asset or liability.
During the financial year ended 31 March 2015 and 31 March 2014, there were no transfers from Level 1, Level 2 or
Level 3, or vice versa.
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