121
Annual Report and Accounts 2014
The following table shows the Group’s financial instruments held at fair value.
Quoted prices in
active markets
Significant
for identical
other
assets and
observable Unobservable
liabilities
inputs
inputs
Level 1
Level 2
Level 3
Total
£m
£m
£m
£m
As at 31 December 2014
Financial assets measured at fair value
Equity instruments*
19.0
19.0
Cash and cash equivalents
43.8
43.8
Foreign currency forward contracts
10.5
10.5
62.8
10.5
-
73.3
Financial liabilities measured at fair value
Foreign currency forward contracts
(9.2)
(9.2)
-
(9.2)
-
(9.2)
As at 31 December 2013
Financial assets measured at fair value
Equity instruments*
17.8
17.8
Cash and cash equivalents
99.9
99.9
Interest rate swaps
0.8
0.8
Foreign currency forward contracts
21.6
21.6
117.7
22.4
-
140.1
Financial liabilities measured at fair value
Debt instruments
(19.0)
(19.0)
Foreign currency forward contracts
(3.1)
(3.1)
Deferred consideration
(9.6)
(9.6)
-
(22.1)
(9.6)
(31.7)
* Equity instruments relate to investments in funds in order to satisfy long-term benefit arrangements.
Valuation techniques for level 2 inputs
Derivative assets and liabilities of £10.5m and £9.2m respectively are valued by level 2 techniques. The valuations are derived from discounted contractual cash
flows using observable, and directly relevant, market interest rates and foreign exchange rates from market data providers.
Valuation techniques for level 3 inputs
Deferred consideration, being contingent consideration of £nil (2013: £8.7m) and amounts payable to employees of £nil (2013: £0.9m) were previously measured
at fair value using significant unobservable (level 3) inputs.
Deferred consideration reconciliation
£m
As at 1 January 2014
9.6
Arising in the year
(9.3)
Exchange adjustment
(0.3)
As at 31 December 2014
-
