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CIMIC Group Limited Annual Report 2016 |
Financial Report
Notes continued
for the 12 months to 31 December 2016
35. FINANCIAL INSTRUMENTS
CONTINUED
f) Net fair values of financial assets and liabilities
continued
Fair value hierarchy
continued
During the period there were no transfers between Level 1, Level 2 and Level 3 fair value hierarchies. Level 3 instruments comprise
unlisted equity and stapled securities and unlisted financial assets at fair value through profit and loss; the determination of the fair value
of these securities is discussed below. The tables below analyse the changes in Level 3 instruments as follows:
12 months to
December 2016
$m
12 months to
December 2015
$m
Unlisted equity and stapled securities available-for-sale
Balance at beginning of reporting period
72.3
63.7
Acquisitions
0.4
-
Transfers
1
4.6
-
Disposals
(71.9)
-
Gains/(losses) recognised in other comprehensive income
-
8.6
Balance at reporting date
5.4
72.3
1
Transfers from equity accounted investments following loss of significant influence in LCIP Co-Investment Unit Trust.
12 months to
December 2016
$m
12 months to
December 2015
$m
Financial assets at fair value through profit or loss
Balance at beginning of reporting period
51.8
47.0
Additions
1.3
-
Gains recognised through profit or loss
75.0
4.8
Balance at reporting date
128.1
51.8
Changing inputs to the Level 3 valuations to reasonably possible alternative assumptions would not change significantly amounts
recognised in profit or loss, total assets, total liabilities or total equity.
Methods and valuation techniques
The methods and valuation techniques used for the purpose of measuring fair value are unchanged compared to the previous reporting
period.
Listed and unlisted investments
The fair values of listed investments are determined on an active market valuation basis using observable market data such as current bid
prices. The fair values of unlisted investments are determined by the use of internal valuation techniques using discounted cash flows.
Where practical the valuations incorporate observable market data. Assumptions are generally required with regard to future expected
revenues and discount rates.
Listed and unlisted debt
Fair value has been determined based on either the listed price or the net present value of cash flows using current market rates of
interest. The carrying amounts of other financial assets and liabilities in the Group’s statement of financial position approximate fair
values.
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