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32. Financial instruments
Fair values
Set out below is a comparison by category of the carrying amounts and fair values of all of the Company’s financial
instruments that are presented in the financial statements:
2010 2009
Note Carrying amount Fair value Carrying amount Fair value
Current financial assets
Derivatives in effective hedges 32 5,390 5,390 4,403 4,403
Financial assets at fair value through profit or loss 32 341 341 551 551
Investments in equity securities 15 887 887 970 970
Trade and other receivables 17 175,421 175,421 147,787 147,787
Cash and cash equivalents 20 89,311 89,311 117,016 117,016
Total
Non-current financial assets
271,350 271,350 270,727 270,727
Embedded derivative 32 5,113 5,113 1,718 1,718
Derivatives in effective hedges 32 86 86 – –
Notes receivable 32 322 322 5,542 5,542
Restricted cash 19 12,528 12,528 13,263 13,263
Total
Current financial liabilities
18,049 18,049 20,523 20,523
Derivatives in effective hedges
Financial current liabilities at fair value through
32 839 839 4,683 4,683
profit or loss 32 915 915 1,365 1,365
Fixed rate loans and borrowings 23 4,254 4,254 3,464 3,464
Short term bank debt 24 45,022 45,022 32,013 32,013
Trade and other payables 30 102,253 102,253 69,791 69,791
Total
Non-current financial liabilities
153,283 153,283 111,316 111,316
Derivatives in effective hedges
Financial non-current liabilities at fair value through
32 698 698 965 965
profit or loss 32 – – 374 374
Fixed rate loans and borrowings 23 122,240 118,681 129,496 127,632
Floating rate loans and borrowings 23 65,573 65,573 38,823 38,823
Total 188,511 184,952 169,658 167,794
The fair value of the financial assets and liabilities are
included at the amount at which the instrument could
be exchanged in a current transaction between willing
parties. The following methods and assumptions were
used to estimate the fair values.
• Short term assets and liabilities approximate their
carrying amounts largely due to the short term maturities
of these instruments.
• The calculation of fair value for derivative financial
instruments depends on the type of instruments:
Derivative interest rate contracts are estimated by
discounting expected future cash flows using current
market interest rates and yield curves over the remaining
term of the instrument; Derivative currency and
commodity contracts are based on quoted forward
exchange rates and commodity prices respectively.
128 Notes to Consolidated Financial Statements
• Floating rate loans and borrowings and notes
receivable maintain a floating interest rate and therefore
approximate fair value.
• The fair value of fixed rate loans and borrowings are
estimated by discounting future cash flows using rates
currently available for debt.
• The fair value of embedded derivatives is estimated
using an option pricing model. The embedded
derivative represents a conversion feature in a note
from an associate. See note 36 for details.
The Company made a strategic investment in a growthbased
company in Iceland in 2008. This investment cannot
be reliably measured at fair value and are therefore
accounted for using a cost basis. At December 31, 2010,
this investment was $887 (2009: $970) and is included in
other non-current assets in the statement of
financial position.