Page 110 - Forterra

108 FORTERRA
ANNUAL REPORT 2012
NOTES TO THE
FINANCIAL STATEMENTS
29 ESTIMATION OF FAIR VALUES (CONTINUED)
Accounting classifications and fair values (Continued)
Interest rates used in determining fair values
The interest rates used to discount estimated cash flows, where applicable, were as follows:
2012 2011
Debt securities 8% – 10% 10% – 12%
Deferred consideration (interest-free) – 1.74%
Fair value hierarchy
The table below analyses 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)
• 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
As at 31 December 2012
Derivative financial liabilities – (1,294) – (1,294)
As at 31 December 2011
Derivative financial assets – 4 – 4
Derivative financial liabilities – (214) – (214)
– (210) – 210
Trust
As at 31 December 2012
Derivative financial liabilities – (220) – (220)
As at 31 December 2011
Derivative financial liabilities – (214) – (214)