Tesco 2014 Annual Report Download - page 105
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Please find page 105 of the 2014 Tesco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Note 21 Financial instruments continued
Fair value measurement
The following table presents the Group’s financial assets and liabilities that are measured at fair value at 22 February 2014, by level of fair value hierarchy:
• quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
• 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 (thatis,
derived from prices) (Level 2); and
• inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
At 22 February 2014
Level 1
£m
Level 2
£m
Level 3
£m
Total
£m
Assets
Available-for-sale financial assets 850 –96 946
Derivative financial instruments:
Interest rate swaps and similar instruments –86 –86
Cross currency swaps –740 –740
Index-linked swaps –704 –704
Forward foreign currency contracts –46 –46
Total assets 850 1,576 96 2,522
Liabilities
Derivative financial instruments:
Interest rate swaps and similar instruments –(152) –(152)
Cross currency swaps –(140) –(140)
Index-linked swaps –(515) –(515)
Forward foreign currency contracts –(62) –(62)
Total liabilities – (869) –(869)
Total 850 707 96 1,653
At 23 February 2013
Level 1
£m
Level 2
£m
Level 3
£m
Total
£m
Assets
Available-for-sale financial assets 808 150 –958
Derivative financial instruments:
Interest rate swaps and similar instruments –130 –130
Cross currency swaps –1,129 –1,129
Index-linked swaps –707 –707
Forward foreign currency contracts –57 –57
Total assets 808 2,173 –2,981
Liabilities
Derivative financial instruments:
Interest rate swaps and similar instruments –(185) –(185)
Cross currency swaps –(79) –(79)
Index-linked swaps –(539) –(539)
Forward foreign currency contracts –(77) –(77)
Total liabilities –(880) –(880)
Total 808 1,293 –2,101
The following table presents the changes in Level 3 instruments for the year ending 22 February 2014:
2014
£m
2013
£m
At beginning of the year –(3)
Gains/(losses) recognised in finance costs in the Group Income Statement – –
Gains/(losses) recognised in the Group Statement of Changes in Equity – –
Purchase of non-controlling interests 96 3
At end of the year 96 –
During the financial year, £nil (2013: £431m) of Level 2 assets were transferred to Level 1 and there were no transfers into or out of Level 3 fair value
measurements.
In the second half of the year, the Group acquired a non-controlling interest in Lazada, an online retailer, for £96m.
102 Tesco PLC Annual Report and Financial Statements 2014
Notes to the Group financial statements continued