Annual Report 2015
FINANCIAL SECTION
137
4 FINANCIAL RISK MANAGEMENT AND FAIR VALUE ESTIMATION
(continued)
(e) Fair value estimation
(continued)
(ii) (continued)
The following table presents the changes in level 3 instruments for the year ended 30 June 2014:
Available-
for-sale
financial
assets
Financial
assets
at fair value
through profit
or loss
Derivative
financial
assets
Derivative
financial
liabilities
HK$m
HK$m
HK$m
HK$m
At 1 July 2013
3,540.6
195.8
58.8
(40.9)
Additions
209.9
231.3
–
–
Net (loss)/gain recognised in the
consolidated statement of
comprehensive income/income
statement
(317.2)
81.4
–
5.3
Disposals
(28.1)
(102.9)
–
–
Transfer to level 1
(583.5)
–
–
–
Transfer from level 1
1.2
–
–
–
At 30 June 2014
2,822.9
405.6
58.8
(35.6)
The following unobservable inputs were used to determine the fair value of the available-for-sale financial
assets included in level 3.
2015
Fair value
2014
Fair value
Valuation
techniques
Unobservable
inputs
Range of
unobservable
inputs
HK$m
HK$m
Property investment industry
1,952.8
1,876.0 Net asset value
(note)
N/A
N/A
Entertainment industry
516.1
373.8 Market comparable
approach
Enterprise value/
earnings before
interest and tax
multiple
9.37 times –
25.31 times
(2014: 8.52 times –
37.55 times)
Property development
industry
735.9
85.1 Residual method Development cost,
developer’s profit
and risk margin
N/A
Others
528.0
488.0
3,732.8
2,822.9
Note: The Group has determined that the reported net asset value represents fair value at the end of the reporting
period.
