BT 2016 Annual Report Download - page 203

209
Overview The Strategic Report Governance Financial statements Additional information
23. Investments
At 31 March
2016
£m
2015
£m
Non-current assets
Available-for-sale 39 36
Fair value through profit or loss 7 8
46 44
Current assets
Available-for-sale 2,878 3,133
Loans and receivables 40 390
2,918 3,523
Loans and receivables are held on the balance sheet at amortised cost and this approximates fair value. Loans and receivables consist of
investments in term deposits denominated in Sterling of £10m (2014/15: £360m) and in US Dollars of £30m (2014/15: £30m).
Fair value hierarchy
At 31 March 2016
Level 1
£m
Level 2
£m
Level 3
£m
Total held at
fair value
£m
Non-current and current investments
Available-for-sale investments 24 2,878 15 2,917
Fair value through profit or loss 7 – – 7
Total 31 2,878 15 2,924
At 31 March 2015
Level 1
£m
Level 2
£m
Level 3
£m
Total held at
fair value
£m
Non-current and current investments
Available-for-sale investments 26 3,133 10 3,169
Fair value through profit or loss 8 – – 8
Total 34 3,133 10 3,177
The three levels of valuation methodology used are:
Level 1 – uses quoted prices in active markets for identical assets or liabilities
Level 2 – uses inputs for the asset or liability other than quoted prices, that are observable either directly or indirectly
Level 3 – uses inputs for the asset or liability that are not based on observable market data, such as internal models or other valuation
method.
Level 2 balances classified as available-for-sale consist of investments in liquidity funds denominated in Sterling of £2,430m (2014/15:
£2,784m) and in Euros of £448m (2014/15: £349m).
Level 3 balances consist of available-for-sale investments of £15m (2014/15: £10m) which represent investments in a number of
private companies. In the absence of specific market data, these investments are held at cost, adjusted as necessary for impairments,
which approximates to fair value.