Annual Report 2015
FINANCIAL SECTION
135
4 FINANCIAL RISK MANAGEMENT AND FAIR VALUE ESTIMATION
(continued)
(e) Fair value estimation
(continued)
The carrying amounts of the financial instruments of the Group are as follows. See note 16 for disclosure
relating to the investment properties which are measured at fair value.
(i) Listed investments are stated at market prices. The quoted market price used for financial assets held by
the Group is the bid price at the end of the reporting period. They are included in level 1.
Unlisted investments are stated at fair values which are estimated using other prices observed in recent
transactions or valuation techniques when the market price is not readily available. The fair value of
interest rate swaps is calculated as the present value of the estimated future cash flows. If all significant
inputs required to estimate the fair value of an instrument are observable, the instrument is included in
level 2. If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.
(ii) The fair value of long-term financial liabilities is estimated by discounting the future contractual cash flows
at the current market interest rate that is available to the Group for similar financial instruments.
The following table presents the Group’s financial instruments that are measured at fair value at 30 June
2015:
Level 1
Level 2
Level 3
Total
HK$m
HK$m
HK$m
HK$m
Available-for-sale financial assets
3,115.7
60.7
3,732.8
6,909.2
Financial assets at fair value
through profit or loss
0.2
–
847.0
847.2
Derivative financial instruments
Derivative financial assets
–
11.1
58.8
69.9
3,115.9
71.8
4,638.6
7,826.3
Derivative financial instruments
Derivative financial liabilities
–
(817.3)
(30.1)
(847.4)
