2012 Annual Report - Ballarat Health Services

Notes to and forming part of the fi nancial statements for the year ended 30 June 2012.
(e) Fair Value
The fair values and net fair values of fi nancial instrument assets and liabilities are determined as follows:
Level One - the fair value of fi nancial instrument assets and liabilities with standard terms and conditions and traded in active liquid markets are determined with
reference to quoted market prices; and
Level Two - the fair value is determined using inputs other than quoted prices that are observable for the fi nancial asset or liability, either directly or indirectly; and
Level Three - the fair value of other fi nancial instrument assets and liabilities is determined in accordance with generally accepted pricing models based on discounted
cash fl ow analysis using unobservable market inputs.
Ballarat Health Services considers that the carrying amount of fi nancial instrument assets and liabilities recorded in the fi nancial statements to be a fair approximation of
their fair values, because of the short-term nature of fi nancial instruments and the expectation that they will be paid in full.
The following tables show that the fair values of most of the contractual fi nancial assets and liabilities are the same as the carrying amounts.
Comparison between carrying amount and fair value
66 Ballarat Health Services
Carrying
Amount
2012
Fair Value
2012
Carrying
Amount
2011
Fair Value
2011
$000 $000 $000 $000
Financial Assets
Cash and cash equivalents 16,083 16,083 16,245 16,245
Receivables (i) 6,855 6,855 5,951 5,951
Available for Sale 35,968 35,968 22,446 22,446
Total Financial Assets 58,906 58,906 44,642 44,642
Financial Liabilities
Payables 21,070 21,070 18,579 18,579
Accommodation Bonds 17,171 17,171 18,980 18,980
Monies Held in Trust 1,751 1,751 1,206 1,206
Other Liabilities 168 168 205 205
Total Financial Liabilities 40,160 40,160 38,970 38,970
(i) The carrying amount must exclude types of statutory fi nancial assets and liabilities (i.e. GST input tax credit and GST payable).
Financial assets measured at fair value
Carrying Amount
as at June 30
Fair value measurement at end of
reporting period using:
Level 1 Level 2 Level 3
$000 $000 $000 $000
2012
Financial Assets at fair value through Profi t & Loss
Available for sale fi nancial assets 35,968 34,973 995 -
Total Financial Assets 35,968 34,973 995 -
2011
Financial Assets at fair value through Profi t & Loss
Available for sale fi nancial assets 22,446 20,591 1,855 -
Total Financial Assets 22,446 20,591 1,855 -