27. CAPITAL AND FINANCIAL RISK MANAGEMENT
(continued)
Fair value hierarchy
The table below analyses financial and non-financial instruments carried at fair value, by
valuation method. The different levels have been defined as follows:
• 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 (i.e., as prices) or indirectly (i.e., derived from prices); and
• Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
Level 1 Level 2 Level 3
Total
$’000
$’000
$’000
$’000
Group and Trust
2014
Financial instruments
Non-deliverable forwards
–
(8,520)
–
(8,520)
Interest rate swaps
–
1,462
–
1,462
–
(7,058)
–
(7,058)
Non-financial instruments
Investment properties
–
– 2,250,783 2,250,783
–
(7,058) 2,250,783 2,243,725
2013
Financial instruments
Non-deliverable forwards
–
(2,376)
–
(2,376)
Interest rate swaps
–
(788)
–
(788)
–
(3,164)
–
(3,164)
Non-financial instruments
Investment properties
–
– 2,058,094 2,058,094
–
(3,164) 2,058,094 2,054,930
Financial assets and financial liabilities not carried at fair value but for which fair values
are disclosed
Non-current security deposits and fixed rates interest-bearing borrowings which are level 2
financial instruments has fair value of $24.5 million and $100.0 million (2013: $20.8 million and
$102.0 million) respectively.
Notes to the Financial Statements
144 | CapitaRetail China Trust Annual Report 2014
