LensCrafters 2013 Annual Report Download - page 117

In order to select the appropriate valuation techniques to utilize, the Group complies with the following
hierarchy:
a) Utilization of quoted prices in an active market for identical assets or liabilities (Comparable Approach);
b) Utilization of valuation techniques that are primarily based on observable market prices; and
c) Utilization of valuation techniques that are primarily based on non-observable market prices.
The Group determined the fair value of the derivatives existing on December 31, 2013 through valuation
techniques which are commonly used for instruments similar to those traded by the Group. The models applied to value
the instruments are based on a calculation obtained from the Bloomberg information service. The input data used in
these models are based on observable market prices (the Euro and USD interest rate curves as well as official exchange
rates on the date of valuation) obtained from Bloomberg.
The following table summarizes the financial assets and liabilities of the Group valued at fair value (in
thousands of Euro):
Classification within
the Consolidated
Statement of
Fair Value Measurements at
Reporting Date Using:
Description Financial Position
December 31,
2013
Level 1 Level 2 Level 3
Foreign Exchange Contracts Other current assets 6,039 — 6,039 —
Foreign Exchange Contracts s Other current liabilities 1,471 — 1,471 —
Classification within
the Consolidated
Statement of
Fair Value Measurements at
Reporting Date Using:
Description Financial Position
December 31,
2012
Level 1 Level 2 Level 3
Foreign Exchange Contracts Other current assets 6,048 — 6,048 —
Foreign Exchange Contracts Other current liabilities 1,119 — 1,119 —
As of December 31, 2013 and 2012, the Group did not have any Level 3 fair value measurements.
The Group maintains policies and procedures with the aim of valuing the fair value of assets and liabilities
using the best and most relevant data available.
The Group portfolio of foreign exchange derivatives includes only forward foreign exchange contracts on the
most traded currency pairs with maturity less than one year. The fair value of the portfolio is valued using internal
models that use observable market inputs including Yield Curves and Spot and Forward prices.