12. Fair value measurements Level 1 $’000 Level 2 $’000 Level 3 $’000 Total $’000 2021 Consolidated Assets Share investment - 3,995 - 3,995 Investment properties - 189,000 - 189,000 - 192,995 - 192,995 Liabilities Derivative financial instruments - (3,909) - (3,909) - (3,909) - (3,909) 2022 Consolidated Assets Derivative financial instruments - 312 - 312 Share investment - 4,578 - 4,578 Investment properties - 250,000 - 250,000 - 254,890 - 254,890 Liabilities Derivative financial instruments - - - - - - - - » Level 1: The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1. » Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. » Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. There were no transfers between Levels 1, 2 or 3 during the current and previous period. Valuation techniques to derive Level 2 fair values Level 2 fair values are derived using the income-based approach to arrive at a market value type valuation. The cash flows associated with the asset are discounted using a discount rate that reflects the cost of capital risk and required return. They are derived from market-based information, such as rental yields or interest rate forward curves. An independent valuation of the investment properties was completed as at 30 June 2022 by CBRE Valuations Pty Limited (CBRE), a qualified valuer with relevant experience in the type of property being valued. The Share investment is in an unlisted public company that is thinly traded. The direct method of valuation has been adopted as the most appropriate valuation method. The value of the share trades is published. Trading of these shares is considered too infrequent to be classified as level 1and so are disclosed as level 2. 35
RkJQdWJsaXNoZXIy MTI3ODI1