annual report 2011

IOOF | annual report 2011
(b) Interest rates used for determining fair value
2011 2010
Finance lease liabilities 5.3% - 9.5% 5.3% - 9.5%
(c) Fair value hierarchy
The table below analyses financial instruments carried at fair value, by valuation method.
The Parent does not carry any assets at fair value.
The different levels have been defined as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
• Level 2: inputs other than quoted prices included with Level 1 that are observable for the asset or liability, either directly (ie. as
prices) or indirectly (ie. derived from prices)
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Consolidated
Level 1 Level 2 Level 3 Total
30 June 2011
Assets
Available-for-sale investments 28,577 - - 28,577
Financial assets designated at fair value through profit or loss 3,000 5,029 - 8,029
31,577 5,029 - 36,606
Liabilities
Share buy-back liabilities - - 43,112 43,112
- - 43,112 43,112
30 June 2010
Assets
Available-for-sale investments 23,179 - - 23,179
Financial assets designated at fair value through profit or loss 2,851 3,628 - 6,479
26,030 3,628 - 29,658
Liabilities
Share buy-back liabilities - - 37,357 37,357
- - 37,357 37,357
Share buy-back liabilities
Reconciliation of movements in level 3 financial liabilities 2011 2010
$’000 $’000
Opening balance as at 1 July 2010 37,357 16,386
Dividends paid to shareholders entitled to contractual share buy-back (4,357) (1,650)
Derecognition of non-controlling interests vested and subject to buy-back during the period - 13,482
Revaluation of shareholder liabilities 10,112 9,139
43,112 37,357
For further information on valuation methods for Level 3 financial instruments refer to note 5(e) fair valuation estimation.
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