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Cathay Pacific Airways Limited Interim Report 2013 45
Condensed Financial Statements
Notes to the Accounts
23. Financial risk management (continued)
31st December 2012
Level 1
HK$M
Level 2
HK$M
Level 3
HK$M
Total
HK$M
Recurring fair value measurement
Assets
Investments at fair value
– listed 140 – – 140
– unlisted – – 1,151 1,151
Liquid funds
– funds with investment managers – 9,353 – 9,353
– other liquid investments – 1,529 – 1,529
Derivative financial assets – 3,316 – 3,316
140 14,198 1,151 15,489
Liabilities
Obligations under finance leases designated as at
fair value through profit or loss – (3,973) – (3,973)
Derivative financial liabilities – (2,230) – (2,230)
– (6,203) – (6,203)
There were no transfers between Level 1 and Level 2, or transfers into or out of Level 3 fair value
hierarchy classifications.
The fair value of the unlisted investments in Level 3 is determined using a discounted cash flow
valuation technique. The significant unobservable input used in the fair value measurement is
the discount rate. Information about fair value measurements using significant unobservable
inputs(Level 3):
Unobservable inputs
Range of
unobservable
inputs
Relationship of unobservable
inputs to fair value
Possible
reasonable
change
Positive/
(negative)
impact on
valuation
(HK$M)
Unlisted investment
– Discount rate 8.0% The higher the discount rate, the lower the
fair value
+/–0.5% (62)/73
– Growth rate 2.2% The higher the future growth rate, the higher
the fair value
+/–0.1% 12/(12)