Ascendas India Trust - Annual Report 2016 - page 151

29. Accounting classifications and fair value (continued)
(c) Fair value measurements (continued)
(ii) Level 2 fair value measurements
As at 31 March 2016, the Group has currency forwards, interest rate swaps and currency swaps, which are
categorised in Level 2. The fair value of currency forwards is determined using mark-to-market valuation,
which is calculated on the basis of quoted forward exchange rates at the balance sheet date, received from
respective banking and financial institutions. The fair values of interest rate swaps and currency swaps are
also determined using mark-to-market valuation, which is calculated as the present value of the estimated
future cash flows, received from respective banking and financial institutions. These derivative financial
instruments are recognised at fair value in the financial statements.
(iii) Level 3 fair value measurements
The following table shows the information about fair value measurements using significant unobservable
inputs (Level 3):
Description
Fair value at
31 March 2016
$'000
Valuation
techniques Unobservable inputs Range
Recurring fair value
measurements
– Investment properties 1,077,011 Discounted cash
flow method,
income capitalisation
method
Market comparable
approach
Discount rate,
capitalisation rate
Market rate of return
14.00 – 15.50%
9.75 – 10.75%
12.00%
– Investment properties
under construction
61,812
– Investment in available-
for-sale financial assets
53,376
Description
Fair value at
31 March 2015
$'000
Valuation
techniques Unobservable inputs Range
Recurring fair value
measurements
– Investment properties 979,247
Discounted cash
flow method,
income capitalisation
method
Discount rate,
capitalisation rate
12.25 – 13.50%
10.25 – 11.00%
– Investment properties
under construction
32,628
– Investment in available-
for-sale financial assets
50,505
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ASCENDAS india trust ANNUAL REPORT 2015/2016