Cordlife Group Limited
Annual Report 2016
113
Notes to
The Financial Statements
for the financial year ended 30 June 2016
38. Fair value of assets and liabilities (cont’d)
(b)
Assets and liabilities measured at fair value (cont’d)
Fair value measurements at the end
of the reporting period using
Quoted prices
Significant
in active
observable
markets for
inputs other
Significant
identical
than quoted un-observable
instruments
prices
inputs
Total
(Level 1)
(Level 2)
(Level 3)
$’000
$’000
$’000
$’000
Company
2015
Recurring fair value measurements
Assets
Financial assets:
Financial asset designated at fair
value through profit or loss
- Quoted equity investment (Note 15)
60,858
–
–
60,858
Derivative
Derivative asset (Note 17)
–
37,971
–
37,971
Financial assets as at 30 June 2015
60,858
37,971
–
98,829
Non-financial asset:
Investment properties
- Commercial properties (Note 13)
–
3,795
–
3,795
Non-financial asset as at 30 June 2015
–
3,795
–
3,795
(c)
Level 2 fair value measurements
The following is a description of the valuation techniques and inputs used in the fair value measurement
for assets and liabilities that are categorised within level 2 of the fair value hierarchy:
Short term investments
Short term investments are valued using present value calculations that incorporate short term interest
rate yields.
Commercial investment properties
The valuation of commercial investment properties is based on comparable market transactions that
consider sales of similar properties that have been transacted in the open market.
Derivative asset
The Black-Scholes option pricing model was 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.
