- Part I: Summary
- Part II: Risk Factors
- Part III: The Scheme of Arrangement and Share Capital Consolidation
- Part IV: Directors, Company Secretary, Registered Office and Advisers
- Part V: Presentation of Statisical Data and Other Information
- Part VI: Information on The Group
- Part VII: Directors and Corporate Governance
- Part VIII: Selected Financial Information
- Part IX: Operating and Financial Review
- Part X: Accountant's Reports and Financial Information
- Part XI: Interim Financial Information of The Group for The 26 Week Period Ended 2 August 2008
- Unaudited condensed consolidated income statements
- Unaudited condensed consolidated balance sheets
- Unaudited condensed consolidated statements of cash flows
- Unaudited condensed statement of consolidated shareholders' equity
- Unaudited condensed consolidated statements of comprehensive income
- Notes to the accounts
- Part XII: Additional Information
- Part XIII: Definitions
8. Fair value measurements
SFAS 157 defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements. SFAS 157 enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. SFAS 157 requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:
Level 1 - quoted market prices in active markets for identical assets and liabilities
Level 2 - observable market based inputs or unobservable inputs that are corroborated by market data
Level 3 - unobservable inputs that are not corroborated by market data
The Group determines fair value based upon quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The methods the Group uses to determine fair value on an instrument specific basis are detailed below. The following table summarises the valuation of our financial instruments at 2 August 2008 categorised by fair valuation level:
| Description |
Fair value |
Significant other observable inputs (Level 2) |
|---|---|---|
| $m | $m | |
| Assets: | ||
| Forward foreign currency contracts and swaps | 1.1 | 1.1 |
| Forward commodity contracts | 0.9 | 0.9 |
| Liabilities: | ||
| Forward foreign currency contracts and swaps | (2.5) | (2.5) |
| Forward commodity contracts | (3.2) | (3.2) |
The fair value of the Group's derivative instruments are based on market value equivalents at the balance sheet date.