Page 103 - Neal and Massy Holdings Annual Report 2012

101 forward focused
3 Financial Risk Management (continued)
3.3 Fair value estimation (continued)
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques.
The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each statement
of financial position date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt. Other
techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.
The nominal value less impairment provision of trade receivables and payables are assumed to approximate their fair values.
The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the
current market interest rates that is available to the Group for similar financial instruments.
The following table presents the Group’s assets and liabilities that are measured at fair value at September 30, 2012:
Level 1 Level 2 Level 3 Total
$ $ $ $
Assets
Financial assets at fair value through profit or loss
- Trading securities 114,844 - - 114,844
Available-for-sale financial assets
- Equity securities 14,589 - 499 15,088
- Debt securities 4,713 - - 4,713
134,146 - 499 134,645
The following table presents the Group’s assets and liabilities that are measured at fair value at September 30, 2011:
Level 1 Level 2 Level 3 Total
$ $ $ $
Assets
Financial assets at fair value through profit or loss
- Trading securities 77,806 - - 77,806
Available-for-sale financial assets
- Equity securities 17,704 - 503 18,207
- Debt securities 4,818 - - 4,818
100,328 - 503 100,831