Fair Value Measurement
|12 Months Ended|
Jan. 31, 2019
|Fair Value Measurement|
|Fair Value Measurement||
The Group measures the following assets and liabilities at fair value on a recurring basis:
Fair value hierarchy
AASB 13 Fair Value Measurement requires all assets and liabilities measured at fair value to be assigned to a level in the fair value hierarchy as follows:
The table below shows the assigned level for each asset and liability held at fair value by the Group:
There were no transfers between levels during the financial periods.
The carrying amount of trade and other receivables and trade and other payables are assumed to approximate their fair values due to their short-term nature. Bank loans approximate fair value of the carrying amount on the basis of the variable nature of the interest rates associated with the loans.
Valuation techniques for fair value measurements categorised within level 2
The fair value of derivative financial instruments is determined using valuation techniques which maximise the use of observable market data where it is available and relies as little as possible on entity specific estimates.
Valuation techniques for fair value measurements categorised within level 3
The fair value of the derivative on convertible notes has been determined using a Black-Scholes model. Measurement inputs include share price on measurement date, expected term of the instrument, risk free rate, expected volatility and expected dividend rate. The Group used valuations specialists to perform these valuations.
Fair value measurements using significant unobservable movements (level 3)
The following table presents the changes in level 3 instruments for the year ended 31 January 2019.
The entire disclosure for fair value measurement.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef