93
FLEXIGROUP LIMITED FINANCIAL REPORT 2011
2010
Consolidated
Carrying amount
Fair Value
$’000
$’000
Financial assets
Cash and cash equivalents
74,844 74,844
Loans and receivables
595,185 595,185
Loss reserve
49,687 49,687
Financial liabilities
Payables
40,944 40,944
Borrowings (gross)
– Fixed interest rate
469,643 476,054
– Floating interest rate
122,878
122,878
Fair value estimation
The fair value of fnancial assets and fnancial liabilities must be estimated for disclosure purposes.
The fair value of fnancial instruments that are not traded in an active market is determined using valuation techniques.
The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each balance
date. Techniques, such as estimated discounted cash fows, are used to determine fair value for the fnancial instruments.
The fair value of loan and lease receivables is estimated by discounting the future contractual cash fows at the current
market interest rate that the Group charges for similar fnancial instruments.
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their
fair values. The fair value of fnancial liabilities for disclosure purposes is estimated by discounting the future contractual
cash fows at the current market interest rate that is available to the Group for similar fnancial instruments.