Annual Report

Ausgrid – Annual Report 2014/15 57
19. FAIR VALUE MEASUREMENTS
This note provides information about how Ausgrid determines fair value of all assets and liabilities for which fair value is measured or
disclosed in the financial statements.
a. Fair value hierarchy
(i) Recognised fair value measurements
The following table presents the Corporation’s assets and liabilities measured and recognised at fair value at 30 June 2015.
At 30 June 2015
Non‐financial assets
Notes
Level 1
$M
Level 2
$M
Consolidated Entity & Ausgrid
Level 3
$M
System assets 12 – – 14 589.2 14 589.2
Land and buildings 12 – 528.7 – 528.7
Total non‐financial assets – 528.7 14 589.2 15 117.9
Non‐recurring fair value measurements
Assets held for sale 11 – 58.2 – 58.2
At 30 June 2014
Financial assets
Non‐novated energy derivatives financial instruments 9 – – 153.5 153.5
Total financial assets – – 153.5 153.5
Non‐financial assets
Systems assets 12 – – 14 429.6 14 429.6
Land and buildings 12 – 512.2 – 512.2
Total non‐financial assets – 512.2 14 429.6 14 941.8
Financial liabilities
Non‐novated energy derivatives financial instruments 9 – – 154.6 154.6
Forward interest rate contracts 9 – 8.9 – 8.9
Total Financial liabilities – 8.9 154.6 163.5
Non‐recurring fair value measurements
Assets held for sale 11 – 0.1 52.9 53.0
There were no transfers between levels 1 and 2 for recurring fair value measurements during the year. For transfers in and out of level 3
measurements refer (b) below.
Ausgrid’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.
(ii) Disclosed fair values
Ausgrid also has a number of assets and liabilities which are not measured at fair value, but for which fair values are disclosed in the notes.
Receivables and payables
The carrying amounts of trade receivables and payables are assumed to approximate their fair values due to their short‐term nature.
Interest‐bearing loans and borrowings
Fair value is calculated based on discounted expected future principal and interest cash flows at the current market interest rates
that are available to the Corporation for similar financial instruments. The fair value of current borrowings approximates the carrying
amount, as the impact of discounting is not significant (level 2).
Total
$M