Fair Value Term deposits The fair value of non-current term deposits is $14,305,299 (2010 - $17,983,943). Fair value has been determined by discounting future interest cash flows using a discount rate based on the market interest rate on term deposits at balance date with principal terms to maturity that match as closely as possible the cash flows of term deposits held. The discount rates range between 2.46% and 3.30% (2010 - 4.00% - 4.76%) Government bonds The government bond matured in November 2011. In 2010 it was not a non-current asset. For those instruments recognised at fair value on the statement of financial position, fair values are determined according to the following hierarchy: • Quoted market price - Financial instruments with quoted prices for identical instruments in active markets; and • Valuation technique using observable inputs - Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable; and • Valuation techniques with significant non-observable inputs - Financial instruments valued using models where one or more significant inputs are not observable. The following table shows an analysis of the basis of the valuation of classes of financial instruments measured at fair value on the statement of financial position.
Total $’000
Quoted market price $’000
Observable inputs $’000
Significant non-observable inputs $’000
-
-
-
-
3,500
3,500
-
-
-
-
-
-
3,500
3,500
-
-
Group 2011 Financial assets Government bonds Group 2010 Financial assets Government bonds Parent 2011 Financial assets Government bonds Parent 2010 Financial assets Government bonds
Impairments There were no impairment provisions for other financial assets. None of the assets are either past due or impaired.
68
TE PŪRONGO 2011