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(d) Fair values 

The only financial instruments held by the Group that are measured at fair value are over the counter derivatives. These derivatives have all been determined to be within level 2 (for the purposes of NZ IFRS7) of the fair value hierarchy as all significant inputs required to ascertain the fair value of these derivatives are observable. 

The following methods and assumptions were used to estimate the fair values for each class of financial instrument. 

## Trade debtors, trade creditors and bank balances 

The carrying value of these items is equivalent to their fair value. 

## Term liabilities 

The fair value of the Group’s term liabilities is estimated based on current market rates available to the Group for debt of similar maturity. 

## Foreign exchange contracts and interest rate swaps 

The fair value of these instruments is estimated based on the quoted market price of these instruments. 

## Guarantees and overdraft facilities 

The fair value of these instruments is estimated on the basis that management do not expect settlement at face value to arise. The carrying value and fair value of these instruments is nil. Details of guarantees are included in note 23. All guarantees are repayable on demand. 

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