| ANNUAL REPORT 2015
182
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
36. FINANCIAL INSTRUMENTS (cont’d)
(d) Fair value hierarchy
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets
or liabilities.
Level 2 fair value measurements are those derived from 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 fair value measurements are those derived from inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
The valuation techniques and significant unobservable inputs used in determining the fair value measurement of Level 3
financial instruments as well as the relationship between key unobservable inputs and fair value, is detailed in the table
below.
Inter-relationship between
key unobservable inputs
Financial instruments
Significant unobservable inputs
and fair value
Financial assets
Club membership
Counter party quotation
The higher the counter party
quotation, the higher the fair value
of the club memberships
Financial liabilities
Non-current other payables
Discounted cash flows method
The higher the discount rate,
based on weighted average cost
the lower the fair value of the
of capital of 8.1% (2014: 7.2%)
non-current other payables
