Creative 2015 Annual Report Download - page 57

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57
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
US$’000
Level 1 Level 2 Level 3 Total
Group
2015
Financial assets, available-for-sale
– Listed equity securies 10,848 – – 10,848
– Unlisted equity securies – – 7,391 7,391
10,848 – 7,391 18,239
2014
Financial assets, available-for-sale
– Listed equity securies 13,666 – – 13,666
– Unlisted equity securies – – 7,942 7,942
13,666 – 7,942 21,608
Fair values for listed equity securities are determined using quoted market prices at the balance sheet date. These instruments
are included in Level 1.
Fair values for unlisted equity securities are determined by using net asset values which approximate the fair value of the
investments. These instruments are included in Level 3.
The changes in Level 3 instruments are as follows:
(d) Capital risk
The Group’s and Company’s objectives when managing capital, which is total equity, are to safeguard the Group’s and Company’s
ability to continue as a going concern and to maintain an optimal capital structure so as to maximise shareholder value. In
order to maintain or achieve an optimal capital structure, the Group and Company may adjust the amount of dividend payment,
return capital to shareholders, issue new shares, buy back issued shares or obtain new borrowings.
As at 30 June 2015 and 2014, the Group and Company does not have any outstanding bank borrowings and the Group and
Company is not subject to any externally imposed capital requirements.
(e) Fair value measurements
The following table presents assets and liabilities measured at fair value and classied by level of the following fair value
measurement hierarchy:
(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
(b) inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie.
as prices) or indirectly (ie. derived from prices) (Level 2); and
(c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
Group
2015 2014
US$’000
US$’000
Group
Beginning of nancial year 7,942 8,595
Purchase of level 3 securies 1,900 250
Disposals (5,418) (733)
Fair value gain recognised in
- other comprehensive income 6,417 690
Impairment losses (3,450) (860)
End of nancial year 7,391 7,942