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33.
FINANCIAL INSTRUMENTS
(continued)
33.5
Fair values
(continued)
Fair value hierarchy
(continued)
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair
value hierarchy for financial instruments measured at fair value. It does not include fair value information for financial assets and financial
liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
Non-current assets (liabilities)
Current assets (liabilities)
R’000
Puttable
non-
controlling
interests Investments
Vendors
for
acquisition
Puttable
non-
controlling
interests
Vendors
for
acquisition
Total
June 30 2017
Financial assets measured at fair value
–
54 504
–
–
–
54 504
Financial liabilities measured at fair value
(118 028)
–
(82 377)
(1 077 168)
(379 474)
(1 657 047)
June 30 2016
Financial assets measured at fair value
–
511 122
–
–
–
511 122
Financial liabilities measured at fair value
(1 168 921)
–
–
–
(513 308)
(1 682 229)
Total
Level 1
Level 2
Level 3
June 30 2017
Financial assets measured at fair value
54 504
–
1 848
52 656
Financial liabilities measured at fair value
(1 657 047)
–
– (1 657 047)
June 30 2016
Financial assets measured at fair value
511 122
501 293
2 054
7 775
Financial liabilities measured at fair value
(1 682 229)
–
– (1 682 229)
Valuation techniques and significant unobservable inputs
The following table shows the valuation techniques used in measuring the puttable non-controlling interests and vendors for acquisition fair
values at June 30.
Valuation technique
Significant unobservable inputs
Inter-relationship between significant
unobservable inputs and fair value
measurement
The expected payments are determined by
considering the possible scenarios of forecast
EBITDA, the amount to be paid under each
scenario and the probability of each scenario.
The valuation models consider the present
value of expected payment, discounted using
a risk-adjusted discount rate.
■
■
EBITDA growth rates: 10 – 23% (2016:
10% – 23%)
■
■
EBITDA multiples: 4,8x – 7x (2016:
4,8x – 7x)
■
■
Risk-adjusted discount rate:
1,99% – 5,0% (2016: 1,99% – 5,0%)
The estimated fair value would increase
(decrease) if:
■
■
the EBITDA were higher (lower); or
■
■
the risk-adjusted discount rate was
lower (higher).
34.
CAPITAL MANAGEMENT
The board of directors’ policy is to maintain a strong capital base so as to sustain future development of the businesses so that it can
continue to provide benefits to its shareholders.
There were no changes in the group’s approach to capital management during the year.
FINANCIAL OVERVIEW
Notes to the consolidated financial statements
for the year ended June 30
FINANCIAL STAT MENTS
Annual integrated report 2017
Bid Corporation Limited
128