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## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT 

## 4. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) 

## Risk exposures and responses (continued) 

## (vi) Fair Values 

We use various methods in estimating the fair value of a financial instrument� The methods comprise: 

Level 1 – The fair value is calculated using quoted prices in active markets� 

Level 2 – The fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices)� 

Level 3 – The fair value is estimated using inputs for the asset or liability that are not based on observable market data� 

As at 31 March 2013, 31 December 2012 and 31 March 2012, the only financial instruments recognised at fair value were interest rate swaps and forward currency contracts� These are valued using a level 2 method� 

The fair value of the financial instruments summarised in the table below have been estimated by applying the level 2 method described above� 

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## 5. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS 

The preparation of the financial statements requires us to make judgements, estimates and assumptions that affect the reported amounts in the financial statements� We continually evaluate our judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses� We base our judgements and estimates on historical experience and on other various factors we believe are reasonable under the circumstances, the result of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other sources� 

With respect to the Australian Federal Government’s Carbon Pollution Reduction Scheme, agriculture has been initially exempted, however we will continue to monitor and assess this scheme for risks and opportunities� 

We have identified the following accounting policies for which significant judgements, estimates and assumptions have been made: 

 Classification of perpetual and pastoral leases refer note 3 (j); 

 Fair value determination of land refer note 3 (i); 

 Fair value determination of livestock and crops refer note 3 (g); 

 Fair value determination of derivative financial instruments refer note 3 (h); 

 Impairment of non-financial and financial assets refer note 3 (k); and 

 Income tax and other taxes refer note 3 (t)� 

Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future periods� 

Further details of the nature of these assumptions and conditions may be found in the relevant notes to the financial statements� 

