Page 133 - ar2012

annual report 2012
131
Notes to the Financial Statements
22 Financial risk management (cont’d)
Fair values (cont’d)
Interest rates used in determining fair values
The interest rate used to discount estimated cash fows is set out below:
2012 2011
% %
Fixed rate medium term notes 1.71 2.17
Rental deposits 1.82 1.65
Estimation of fair values
The following summarises the signifcant methods and assumptions used in estimating the fair values of
fnancial instruments of the H-REIT Group and the Stapled Group.
Non-derivative fnancial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future
principal and interest cash fows, discounted at the market rate of interest at the reporting date.
Other fnancial assets and liabilities
The notional amounts of fnancial assets and liabilities with a maturity of less than one year (including
trade and other receivables, cash and cash equivalents and trade and other payables) and borrowings
which reprice within 12 months and with a maturity of less than one year, approximate their fair values
because of the short period to maturity or repricing. All other fnancial assets and liabilities are discounted
to determine their fair values.