AnnuAl REPORT 2011-2012 - Sbs

18(c) net income and expense from financial
liabilities
Notes
COnSOlIDAteD CORpORAtIOn
2012
$’000
2011
$’000
2012
$’000
2011
$’000
Financial liabilities – at amortised cost
Interest expense
Payables
3(d) (600) (959) (600) (903)
Exchange gains/(loss) (14) 33 (15) 33
Net gain/(loss) financial liabilities (614) (926) (615) (870)
Net gain/(loss) from financial liabilities (not at
fair value through profit and loss) (i) (614) (926) (615) (870)
(i) There were no other gains or losses arising from financial liabilities other than interest paid and exchange rate
gains or losses.
18(d) Fair values of financial instruments
Valuation method used for determining the fair value of financial instruments
From 1 July 2009, amendments to AASB 7 “Financial Instruments: Disclosures” require fair value measurements to be
in accordance with the following fair value measurement hierarchy (for recognition or disclosure of their fair value):
• Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2 – inputs (other than quoted prices included within level 1) that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices); and
• Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).
As at 30 June 2012, the Corporation held investments (held-to-maturity) and loans payable to the Commonwealth for
which fair values have been calculated, and disclosed in this note (as level 2 financial instruments). The fair values of the
held-to-maturity investments and the Commonwealth loans are calculated on the basis of discounted cash flows using
current interest rates (at 30 June) for investments and liabilities with similar market and credit risk profiles. The fair values
of cash, receivables for goods and services, and trade creditors approximate their carrying amounts.
The Corporation has no level 3 financial instruments where a valuation technique is required to be based on significant
unobservable inputs.
No change in fair value disclosed in this note has been, nor is required to be, recognised in profit and loss. They are held
to maturity, and are not held for sale. There are no unrecognised financial assets or liabilities.
AnnuAl RepoRt 2011 – 2012 117