ASX ANNOUNCEMENT Bega Cheese Limited ... - Open Briefing

Financial Statements
Year Ended 30 June 2011
Notes to the Financial Statements (cont.)
d. Fair Value Estimation (cont.)
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes. AASB 7 Financial Instruments: Disclosures requires disclosure of fair value measurements by level
of the following fair value measurement hierarchy:
i. quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
ii. inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices) (level 2), and
iii. inputs for the asset or liability that are not based on observable market date (unobservable inputs) (level 3)
The following table presents the Group’s assets and liabilities measured and recognised at fair value at 30 June 2011
and 30 June 2010.
Consolidated Level 1 Level 2 Level 3 Total
Period Ending 30 June 2011 $'000 $'000 $'000 $'000
Assets
Financial assets at fair value through equity 36,669 140 201 37,010
Derivatives used for hedging - 2,489 - 2,489
Total assets 36,669 2,629 201 39,499
Liabilities
Derivatives used for hedging - (1,110) - (1,110)
Total liabilities - (1,110) - (1,110)
Period Ending 30 June 2010
Assets
Financial assets at fair value through equity - 140 59 199
Derivatives used for hedging - 819 - 819
Total assets - 959 59 1,018
Liabilities
Derivatives used for hedging - (4,072) - (4,072)
Total liabilities - (4,072) - (4,072)
3. Critical Accounting Estimates and Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the
circumstances. In particular, information about significant areas of estimation, uncertainty and critical judgement in applying
accounting policies that have the most significant effect on the amount recognised in the financial statements are described
in Note 7 - Deferred tax assets, Note 10 - Inventory valuation and Note 29 - Subsequent events, allocation of costs relating
to the IPO of Bega Cheese.
4. Segment Information
a. Description of Segments
Management has determined the operating segments based on the reports reviewed by the Board of Directors that are
used to make strategic decisions. The Group has two reporting segments:
i. Bega Cheese - which manufactures natural cheese, processed cheese, powders and butter and packages cheese
products
ii. Tatura Milk - which manufactures and packages cream cheese, powders and nutritionals.
Bega Cheese Limited 2011 Annual Report 46