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As of 31 March 2014 

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Available-for-sale financial assets and financial assets at FVTPL are included in “Other financial assets” in the consolidated statements of financial position. 

The movement of fair value of financial assets categorised within Level 3 of the fair value hierarchy is as follows: 

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(Note) Those are included in “Finance expense” in the consolidated statements of income. 

The financial assets categorised within Level 3 are composed mainly of unquoted equity shares. 

The fair value of unquoted equity shares is measured mainly using discounted future cash flows. The fair value of unquoted equity shares is categorised within Level 3 because unobserv- able inputs such as estimates of future net operating profit after tax and WACC are used for the measurement. The WACC used for the measurement of fair value is between 6% and 8% depending on region or industry. Generally, the fair value would decrease if the WACC capital were higher. 

The fair value of unquoted equity shares is measured by departments of the Company and each Group company in accordance with the Group accounting policy every quarter. 

The results with evidences of changes in fair value are reported to a superior and, if necessary, to the corporate administration and finance committee as well. 

In regards to financial instruments categorised within Level 3, there would be no significant change in fair value when one or more of the unobservable inputs is changed to reflect reasonably possible alternative assumptions. 

