MCCU Annual Report - page 93

93
32. Financial Instruments and Financial Instruments Risk Management (cont'd):
e) Fair value
.
.
.
Level 1
Level 2
Level 3
Total
$
$
$
$
Available-for-sale Investments -
Unquoted Investments at Fair Value
-
-
585,726,681
585,726,681
Quoted Investments at Fair Value
-
-
-
-
-
-
585,726,681
585,726,681
The fair values of cash resources, securities purchased under resale agreements, other assets, other liabilities, are
assumed to approximate their carrying values due to their short-term nature.
Many of the Credit
Union’s
financial instruments lack an available trading market. Therefore, these instruments
have been valued using present value or other valuation techniques and may not necessarily be indicative of the
amounts realisable in an immediate settlement of the instruments.
There were no transfers between levels during the year.
The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the
statement of financial position. A market is regarded as active if quoted prices are readily and regularly available
from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent
actual and regularly occurring market transactions on an arm's length basis. The quoted market price used for
financial assets is the current bid price. These instruments are grouped in Level 1.
The fair value of financial instruments not traded in an active market is determined by using valuation techniques.
These valuation techniques maximise the use of observable market data where it is available and rely as little as
possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in Level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the instrument
that are not based on observable market data (unobservable inputs).
MANCHESTER CO-OPERATIVE CREDIT UNION (1977) LIMITED
NOTES TO THE FINANCIAL STATEMENTS - (CONT'D)
YEAR ENDED 31ST DECEMBER 2013
Fair value amounts represent estimates of the arm’s length consideration that would be currently agreed upon
between knowledgeable, willing parties who are under no compulsion to act and is best evidenced by a quoted
market price, if one exists.
The following table provides an analysis of financial instruments held as at 31st December 2013 that, subsequent to
initial recognition, are measured at fair value. The financial instruments are grouped into levels 1 to 3 based on the
degree to which the fair value is observable, as follows:
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical
instruments;
MANCHESTER CO-OPERATIVE CREDIT UNION
ANNUAL REPORT 2013
I...,83,84,85,86,87,88,89,90,91,92 94,95,96,97,98,99,100,101,102,103,...126
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