Financial instruments
When measuring the fair value of an asset or a liability, the group uses market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques categorised as follows:
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices).
- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
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 liabilities | |||||||||||
| R000s | Puttable non- controlling interests |
Investments | Vendors for acquisition |
Puttable non- controlling interests |
Vendors for acquisition |
Total | ||||||
| December 31 2019 | ||||||||||||
| Financial assets measured at fair value | – | 55 309 | – | – | – | 55 309 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Financial liabilities measured at fair value | (3 805 681) | – | (290 731) | (38 917) | (40 448) | (4 175 777) | ||||||
| December 31 2018 | ||||||||||||
| Financial assets measured at fair value | – | 78 410 | – | – | – | 78 410 | ||||||
| Financial liabilities measured at fair value | (305 106) | – | (299 461) | (1 155 977) | (55 469) | (1 816 013) | ||||||
| June 30 2019 | ||||||||||||
| Financial assets measured at fair value | – | 55 115 | – | – | – | 55 115 | ||||||
| Financial liabilities measured at fair value | (336 620) | – | (275 144) | (1 126 128) | (103 882) | (1 841 774) | ||||||
| Fair value | Level 1 | Level 2 | Level 3 | Total | ||||||||
| December 31 2019 | ||||||||||||
| Financial assets measured at fair value | – | 4 691 | 50 618 | 55 309 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Financial liabilities measured at fair value | – | – | (4 175 777) | (4 175 777) | ||||||||
| December 31 2018 | ||||||||||||
| Financial assets measured at fair value | – | 6 167 | 72 243 | 78 410 | ||||||||
| Financial liabilities measured at fair value | – | – | (1 816 013) | (1 816 013) | ||||||||
| June 30 2019 | ||||||||||||
| Financial assets measured at fair value | – | – | 55 115 | 55 115 | ||||||||
| Financial liabilities measured at fair value | – | – | (1 841 774) | (1 841 774) | ||||||||
| 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 EBITDAs, 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. |
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The estimated fair value would increase (decrease) if:
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