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Financial Statements
2.21 Fair Value Estimation
The fair value of financial instruments traded in active markets (such as trading and available-for-sale
securities) is based on quoted market prices at the balance sheet date. The quoted market price used for
financial assets held by the Company is the current bid price.
The fair value of financial instruments that are not traded in an active market (for example, over-the-
counter derivatives) is determined by using valuation techniques. The Company uses a variety of methods
and makes assumptions that are based on market conditions existing at each balance sheet date. Quoted
market prices or dealer quotes for similar instruments are used for long-term debt. Other techniques, such
as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows.
The fair value of forward foreign exchange contracts is determined using quoted forward exchange rates
at the balance sheet date.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate
their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting
the future contractual cash flows at the current market interest rate that is available to the Company for
similar financial instruments.
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2.21 Fair Value Estimation
The fair value of financial instruments traded in active markets (such as trading and available-for-sale
securities) is based on quoted market prices at the balance sheet date. The quoted market price used for
financial assets held by the Company is the current bid price.
The fair value of financial instruments that are not traded in an active market (for example, over-the-
counter derivatives) is determined by using valuation techniques. The Company uses a variety of methods
and makes assumptions that are based on market conditions existing at each balance sheet date. Quoted
market prices or dealer quotes for similar instruments are used for long-term debt. Other techniques, such
as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows.
The fair value of forward foreign exchange contracts is determined using quoted forward exchange rates
at the balance sheet date.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate
their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting
the future contractual cash flows at the current market interest rate that is available to the Company for
similar financial instruments.
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