Notes to the Financial Statements - Swissco Holdings Limited

Notes
to the Financial Statements
For the financial year ended 31 December 2009
30. Financial risk management (continued)
(e)
Fair value measurements
Effective from 1 January 2009 the Group adopted the amendment to FRS 107 which requires
disclosure of fair value measurements by level of the following fair value measurement hierarchy:
(i) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
(ii)
(iii)
inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (is as prices) or indirectly (ie derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable
inputs) (Level 3).
The following table presents the assets measured at fair value at 31 December 2009.
Group and Company
Level 1 Level 2 Level 3 Total
$ $ $ $
Asset
Financial assets, available-for-sale
- Equity securities 27,540,000 – – 27,540,000
There are no liabilities measured at fair value at 31 December 2009.
The fair value of the available-for-sale securities is based on quoted market prices at the balance
sheet date. The quoted market price used for these financial assets held by the Group is the current
bid price. These instruments are included in Level 1.
The carrying value less impairment provision of trade receivables and payables are assumed to
approximate their fair values. The fair value of borrowings approximates their carrying amount as
these borrowings are at variable rates with repricing within 3 months of the balance sheet date.
79 Annual Report 2009 Swissco International Limited