161
ANNUAL REPORT 2014
28 DETERMINATION OF FAIR VALUES (CONT’D)
Estimation of fair values
Valuation processes applied by the Stapled Group
The Stapled Group regularly reviews significant unobservable inputs and valuation adjustments included in the
fair value measurements. If third party information, such as broker quotes or pricing services, is used to measure
fair value, then the finance team assesses the documents that 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 different levels have been defined as follows:
•
Level 1:
quoted prices (unadjusted) in active markets for identical assets or liabilities that Stapled 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 or indirectly; and
•
Level 3:
unobservable inputs for the assets or liability.
Financial assets and financial liabilities carried at fair value
Note Level 1 Level 2 Level 3
Total
$’000
$’000
$’000
$’000
H-REIT Group and Stapled Group
2014
Financial derivative liabilities
13
–
581
–
581
2013
Financial derivative liabilities
13
–
421
–
421
NOTES TO THE FINANCIAL STATEMENTS
