2011-2012 Annual Report - Full Version - PDF - Palmerston North ...

Note 33Fair value hierarchy disclosuresFor those instruments recognised at fair value inthe statement of financial position, fair values aredetermined according to the following hierarchy:◊◊quoted market price (level 1) for financialinstruments with quoted prices for identicalinstruments in active markets.valuation technique using observable inputs(level 2) for financial instruments with quotedprices for similar instruments in active marketsor quoted prices for identical or similar◊instruments in inactive markets and financialinstruments valued using models where allsignificant inputs are observable.valuation techniques with significant nonobservableinputs (level 3) for financialinstruments valued using models where one ormore significant inputs are not observable.The following table analyses the basis of the valuation of classes of financial instruments measured at fairvalue in the statement of financial position:Valuation techniquETotal Quoted Observable Significantmarket price inputs non-observableinputs$000 $000 $000 $000Council and Group 2012Financial assetsNZ securities and bonds 13,932 13,932 - -Quoted overseas share investments 5,803 5,803 - -Unlisted shares 494 - - 494Derivative financial instruments 2,338 - 2,338 -Financial liabilitiesDerivative financial instruments 10,640 - 10,640 -Council and Group 2011Financial assetsNZ securities and bonds 15,633 15,633 - -Quoted overseas share investments 6,406 6,406 - -Unlisted shares 269 - - 269Derivative financial instruments 2,557 - 2,557 -Financial liabilitiesDerivative financial instruments 5,406 - 5,406 -◊ There were no transfers between the differentlevels of the fair value hierarchy.Financial Statements Note 33Valuation techniques with significant non-observable inputs (level 3)The table below provides a reconciliation from the opening balance to the closing balance for the level 3fair value measurements:CouncilGroupActual Actual Actual Actual2012 2011 2012 2011$000 $000 $000 $000Balance at 1 July 269 591 269 591Additional new shares purchased 196 - 196 -Gains and losses recognised in other comprehensive income 29 (322) 29 (322)Balance at 30 June 494 269 494 269Palmerston North City Council Annual Report 2011/12181