WEL Networks 2017 Annual Report - page 67

65 2017 WEL Networks | Annual Report
wel.co.nz
WEL NETWORKS LIMITED
Notes to the financial statements
For the year-ended 31 March 2017 (continued)
(d) Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes.
The table below analyses financial instruments carried at fair value, by valuation method. The different levels
have been defined as follows:
ƒ
ƒ Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
ƒ
ƒ Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(that is, as prices) or indirectly (that is, derived from prices) (Level 2).
ƒ
ƒ Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
The following table presents the Group’s financial assets and liabilities that are-measured at fair value at 31 March 2017
and 31 March 2016.
31 March 2017 Level 1
$’000
Level 2
$’000
Level 3
$’000
Total balance
$’000
Assets
Derivatives used for hedging
Interest rate contracts - 892 - 892
Total assets - 892 - 892
Liabilities
Derivatives used for hedging
Interest rate contracts - 5,457 - 5,457
Total liabilities - 5,457 - 5,457
31 March 2016
Liabilities
Derivatives used for hedging
Interest rate contracts - 7,972 - 7,972
Total liabilities - 7,972 - 7,972