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4. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL ASSETS MANAGEMENT (cont’d)
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
(vi) Fair value of financial assets and financial liabilities (Cont’d)
The fair values of other financial assets and liabilities are determined as follows:
(a) the fair value of financial assets and financial liabilities traded on liquid markets are determined with reference
to quoted market prices;
(b) the fair value of other financial assets and financial liabilities are determined in accordance with generally
accepted pricing models based on discounted cash flow analysis using prices from observable current market
transactions and dealer quotes for similar instruments.
At the end of the financial year, except as disclosed in Note 27, the Group and Co-operative have no significant
exposure to unrecognised financial instruments.
The Group classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs
used in making the measurements. The fair value hierarchy has the following levels:
(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
(b) 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) (Level 2); and
(c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
