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## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

For the year ended 30 June 2014 

## 30 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) 

## (c) Terms, conditions and accounting policies (continued) 

## Recognised Financial Instruments (continued) 

## (iii) Equity 

## Ordinary shares: 

From 1 July 1998, ordinary share capital has been increased based on the proceeds received from shares issued (less direct share issue costs), and decreased based on the buy-back cost (including direct buy-back costs). Prior to that date, ordinary share capital was recognised at the par value of the amount paid up, and any excess between the par value and the issue price was recorded in the share premium reserve. Details of shares issued and the terms and conditions of options outstanding over ordinary shares at reporting date are set out in Note 19. 

## (d) Fair values 

Set out below is a comparison by category of carrying amounts and fair values of all of the Group’s financial instruments recognised in the financial statements, excluding any classified under discontinued operations. 

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The following methods and assumptions are used to determine the fair values of financial assets and liabilities: 

## Cash, cash equivalents and short-term deposits: 

The carrying amount approximates fair value because of short-term maturity. 

## Receivables and accounts payable – current: 

The carrying amount approximates fair value because of short-term maturity. 

## Receivables – non current: 

The fair values of non current receivables are estimated using discounted cash flow analysis, based on current incremental lending rates for similar types of arrangements. 

## Borrowings – current: 

The carrying amount approximates fair value because of short-term maturity. 

## Borrowings – non current: 

The net fair values of the secured and unsecured borrowings are determined based on the weighted average market-based interest rates that are applicable to the borrowings. 

The Group uses the following methods in calculating or estimating the fair value of a financial instrument: 

Level 1: Fair value is calculated using quoted prices in active markets. 

Level 2: Fair value is estimated using inputs other than quoted prices that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). The fair value of the financial instruments as well as methods used to estimate the fair value are summarised in the table below. 

Level 3: Fair value is estimated using inputs for the asset that are not based on observable market data. 

