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58
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
(e) Fair value measurements
Effective 1 July 2009, the Group adopted the amendment to FRS 107 which requires disclosure of fair value measurements
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).
The following table presents the assets and liabilities measured at fair value at 30 June 2010:
US$’000
Level 1 Level 2 Level 3 Total
Group
Financial assets, available-for-sale
– Listed equity securities 22,530 – – 22,530
– Unlisted equity securities – – 11,365 11,365
22,530 – 11,365 33,895
Fair values for listed equity securities are determined using quoted market prices at the balance sheet date. These instruments
are included in Level 1.
Fair values for unlisted equity securities are determined by using valuation techniques. The Group uses a variety of methods,
such as asset values, and makes assumptions that are based on market conditions existing at each balance sheet date. These
instruments are included in Level 3.
The following table presents the changes in Level 3 instruments for the nancial year ended 30 June 2010:
US$’000
Beginning of nancial year 12,283
Purchases of level 3 securities 500
Fair value losses recognised in
- other comprehensive income (420)
- prot or loss (998)
End of nancial year 11,365
notes to tHe fInAncIAl stAteMents
– For the nancial year ended 30 June 2010
30. RELATED PARTY TRANSACTIONS
In addition to the information disclosed elsewhere in the nancial statements, the following transactions took place between
the Group and related parties at terms agreed between the parties:
29. FINANCIAL RISK MANAGEMENT (cont’d)
(a) Sales and purchases of goods and services
Group
2010 2009
US$’000 US$’000
Sales of goods and/or services to associated companies 1,641 1,736
Purchases of goods and/or services from associated companies 1,154 744
Outstanding balances arising from sale/purchase of goods and services, are set out in Notes 11 and 21 respectively.