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## NOTEs TO THE FINANCIAL sTATEMENTs 

FAIRFAx MEDIA LIMITED AND CONTROLLED ENTITIES FOR THE PERIOD ENDED 30 JUNE 2013 

## 36. FINANCIAL AND CAPITAL RIsk MANAGEMENT (CONTINUED) 

## (e) FAiR VAlue 

The carrying amounts and fair values of financial assets and financial liabilities at reporting date are: 

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Market values have been used to determine the fair value of listed available for sale investments. 

The fair value of the senior notes and lease liabilities have been calculated by discounting the future cash flows by interest rates for liabilities with similar risk profiles. The discount rates applied range from 1.93% to 13.29% (2012: 2.12% to 13.32%). 

The carrying value of all other balances approximate their fair value. 

The Group uses various methods in estimating the fair value of a financial instrument. The methods comprise: 

(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1); 

(b) inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2); and 

(c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3). 

The fair value of the financial instruments as well as the methods used to estimate the fair value are summarised in the table below: 

<img src='content_image/228292.jpg'>

