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CSIR ANNUAL REPORT 2010/11
Notes to the Annual Financial Statements
for the year ended 31 March 2011
22
FINANCIAL INSTRUMENTS (continued)
22.4 Fair values
At 31 March 2011 the carrying amount of bank balances and cash, deposits, trade and other receivables, contracts
in progress and trade and other payables approximated their fair values due to the short-term maturities of these assets
and liabilities.
Basis for determining fair values
Interest free employee loans
The fair value of interest free employee loans is calculated based on the present value of future cash fl ows, discounted
at the market rate of interest at the reporting date.
Trade and other receivables and trade and other payables
The fair value of trade and other receivables and trade and other payables is calculated based on the present value of
future cash fl ows, discounted at the average return on investment rate at the reporting date.
22.5 Fair value hierarchy
The table below analyses fi nancial instruments carried at fair value, by valuation method. The different levels have been
defi ned as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: 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 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Level 1 Level 2 Level 3 Total
31 March 2011
Derivative fi nancial liabilities (28) (28)
31 March 2010
Derivative fi nancial liabilities (115) (115)
160