70
NATURAL COOL HOLDINGS LIMITED
NOTES TO
THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014
19 Financial instruments (Continued)
Accounting classifications and fair values (Continued)
Interest rates used for determining fair value
The interest rates used to discount estimated cash flows, when applicable, are based on the prevailing
market borrowing rates which are available to the Group at the reporting date.
Fair value hierarchy
The table below analyses fair value measurements for assets and liabilities, by the levels in the fair value
hierarchy based on the inputs to valuation techniques. The different levels are defined as follows:
Level 1 : quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 : inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 : inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
The table below analyses financial instruments carried at fair value and financial instruments and non-
financial instruments which are not carried at fair value but for which fair values are disclosed*:
Level 1
Level 2
Level 3
Total
$
$
$
$
Group
2014
Financial instruments carried at fair value:
Other investments:
- Unquoted equity securities
–
– 3,750,000 3,750,000
- Zero-coupon convertible bonds
–
– 2,148,240 2,148,240
–
– 5,898,240 5,898,240
Financial instruments which are not carried
at fair value but for which fair values are
disclosed:
Loans and borrowings**
– 19,703,844
– 19,703,844
Finance lease liabilities
– 1,611,608
– 1,611,608
– 21,315,452
– 21,315,452
