New World Development Company Limited
134
Financial Section
4 Financial Risk Management and Fair Value Estimation
(continued)
(e) Fair value estimation
(continued)
(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 2016:
Level 1
Level 2
Level 3
Total
HK$m HK$m HK$m HK$m
Available-for-sale financial assets
2,162.6
27.8
9,688.6
11,879.0
Financial assets at fair value through
profit or loss
0.1
–
695.1
695.2
Derivative financial instruments
Derivative financial assets
–
41.9
58.8
100.7
2,162.7
69.7
10,442.5
12,674.9
Derivative financial instruments
Derivative financial liabilities
–
(857.9)
(122.1)
(980.0)
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)
There were no significant transfer of financial assets between level 1 and level 2 fair value hierarchy
classifications.
The following table presents the changes in level 3 instruments for the year ended 30 June 2016:
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 2015
3,732.8
847.0
58.8
(30.1)
Additions
7,603.6
275.1
–
(97.5)
Net (loss)/gain recognised in the consolidated
statement of comprehensive
income/income statement
(433.2)
(137.6)
–
5.5
Reclassification
(443.0)
–
–
–
Disposals
(771.6)
(289.4)
–
–
At 30 June 2016
9,688.6
695.1
58.8
(122.1)
