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30 Jun 15

30 Jun 14

Fair value sensitivity

$’000

$’000

The sensitivity of fair value of interest rate swaps to

changes in interest rates is as follows:

Interest rate

movement

(Increase)/decrease

in interest expense

–2.0%

(9,305)

(6,098)

–1.0%

(4,628)

(3,003)

–0.5%

(2,308)

(1,490)

0.5%

2,304

1,467

1.0%

4,600

2,912

2.0%

9,158

5,738

NOTE 19

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

Set out below is a comparison by category of carrying amounts and fair values of all the Trust’s financial instruments.

Fair value

Carrying amount

30 Jun 15

30 Jun 14

30 Jun 15

30 Jun 14

$’000

$’000

$’000

$’000

Assets

Cash

3,063

3,437

3,063

3,437

Trade and other receivables (i)

2,588

2,296

2,588

2,296

Liabilities

Trade and other payables (i)

22,554

19,591

22,554

19,591

Interest bearing liabilities (ii)

– Finance lease

69

114

69

114

– Floating rate debt

209,900

206,200

209,900

206,200

Derivative liabilities (ii)

6,220

7,628

6,220

7,628

(i) These financial assets and liabilities are not subject to interest rate risk and the fair value approximates carrying amount.

(ii) These financial assets and liabilities are subjected to interest rate and market risks, the basis of determining the fair value is set out in the fair value hierarchy below.

Determination of fair value

The Trust uses the following hierarchy for determining and disclosing the fair value of a financial instrument. The valuation techniques comprise:

Level 1: the fair value is calculated using quotes (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: the fair value is estimated using inputs other than quoted prices that are observable, either directly (as prices) or indirectly (derived from

prices).

Level 3: the fair value is estimated using inputs that are not based on observable market data.

30 Jun 15

Level 1

Level 2

Level 3

$’000

$’000

$’000

$’000

Liabilities measured at fair value

Interest bearing liabilities

– Finance lease

69

69

– Floating rate debt

209,900

209,900

Derivative liabilities

– Interest rate derivatives

6,220

6,220

30 Jun 14

Level 1

Level 2

Level 3

$’000

$’000

$’000

$’000

Liabilities measured at fair value

Interest bearing liabilities

– Finance lease

114

114

– Floating rate debt

206,200

206,200

Derivative liabilities

– Interest rate derivatives

7,628

7,628

During the year, there were no transfers between Level 1, Level 2 and Level 3 fair value measurements.

All other financial assets and liabilities have a fair value which approximates carrying amount.

Investment properties are considered Level 3, refer to Note 7: Investment properties for relevant fair value disclosures.

21