123
CORDLIFE GROUP LIMITED
| ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
37.
FAIR VALUE OF ASSETS AND LIABILITIES
(CONTINUED)
(c)
Level 2 fair value measurements
(Continued)
Derivative asset
The Black-Scholes option pricing model is used to calculate the fair value of conversion option which
was recognised as a financial derivative asset. Fair value of the derivative asset is affected by the time to
maturity of the bond, the share price of CCBC as at reporting date compared to the date of acquisition
and the value of the bond as a function of the cash inflow from the bond at redemption date.
(d)
Assets and liabilities not carried at fair value but for which fair value is disclosed
The following tables show an analysis of assets and liabilities not measured at fair value at the end of
the reporting period but for which fair value is disclosed:
Fair value measurements at the end of the
reporting period using
Quoted prices
in active
markets for
identical
instruments
Significant
observable
inputs other
than quoted
prices
Significant
un-observable
inputs
Total
Carrying
Amount
(Level 1)
(Level 2)
(Level 3)
$’000
$’000
$’000
$’000
$’000
Group
2015
Recurring fair value
measurements
Assets
– Investment in
associate (Note 11)
9,838
–
–
9,838
13,543
– Leasehold building
(Note 12)
–
6,065
–
6,065
5,156
Assets as at
30 June 2015
9,838
6,065
–
15,903
18,699
2014
Assets
– Investment in
associate (Note 11)
13,954
–
–
13,954
16,819
– Leasehold building
(Note 12)
–
5,120
–
5,120
4,638
Assets as at
30 June 2014
13,954
5,120
–
19,074
21,457
