Annual Report 2016
115
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
5.
F I NANC I AL I NSTRUMENTS , F I NANC I AL R I SKS AND CAP I TAL
MANAGEMENT
– continued
(b)
Financial risk management policies and objectives
– continued
(v)
Fair value measurements
– continued
Fair value of the Group’s financial assets and financial liabilities that are measured at
fair value on a recurring basis – continued
There were no transfer between Level 1 and 2 for the Group in the year.
The directors consider that the carrying amount of financial assets and liabilities
recognised in the Company’s and consolidated financial statements at amortised cost
approximate their fair values.
Fair value measurements and valuation process
In estimating the fair value of an asset or a liability, the Group uses market-observable
data to the extent it is available. Where Level 1 inputs are not available, the Group
engages third party qualified valuers to perform the valuation or uses quoted forward
exchange rates and yield curves derived from quoted exchange rates or interest rates
matching maturities of the contracts at the end of the reporting period. The finance
department of the Company works closely with the qualified external valuers to
establish the appropriate valuation techniques and inputs to the model.
Information about the valuation techniques and inputs used in determining the fair
value of various assets and liabilities are disclosed above.
