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notes to the financial Statements
for the year ended 31 March 2012
The directors consider that the carrying amounts of financial assets and financial liabilities recorded at
amortised cost in the financial statements approximate their fair values.
Fair value measurements recognised in the balance sheet
The following table provides an analysis of financial instruments that are measured subsequent to total
recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for
•
identical assets or liabilities;
Level 2 fair value measurements are those derived from 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 fair value measurements are those derived from valuation techniques that include inputs for the
•
asset or liability that are not based on observable market data (unobservable inputs).
Level 1
Level 2
Level 3
Total
Year
$’000
$’000
$’000
$’000
Group & Parent 2012
Investments carried at cost
2012
-
100
-
100
Derivative financial liabilities
2012
-
(1,695)
-
(1,695)
Group & Parent 2011
Investments carried at cost
2011
-
100
-
100
Derivative financial liabilities
2011
-
(1,450)
-
(1,450)
There were no transfers between Level 1 and 2 during the year.
c) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors. The Group manages
liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Included in note 23 is information on undrawn bank loan facilities that the Group has at its disposal to further
reduce liquidity risk.
Liquidity and interest risk tables
The following tables detail the Company’s and Group’s remaining contractual maturities for their non-
derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial
liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest
and principal cash flows.
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