Page 103 - Paragon Annual Report 2

Notes to the consolidated financial statements (continued) 25 Financial risk management (continued)
Reporting of financial risks
Fair values
The fair value of financial assets and liabilities, together with the carrying amounts shown in the Consolidated Statement of Financial Position, are as follows:
| 99
116,275
43,804
160,513
434
–
2017
116,275
43,804
160,513
434
–
2016
Total fair value
€000
Carrying value
€000
Total fair value
€000
Carrying value
€000
Financial assets
Trade and other receivables* Cash and cash equivalents
Long term receivables Derivative financial instruments: – Forward exchange contract
Total financial assets
Financial liabilities
Unsecured bank loans and overdrafts Trade and other payables** Derivative financial instruments:
– Forward exchange contract
Total financial liabilities
* excluding prepayments
Level 2
61,440 26,315 504
–
88,259
(16,870) (76,411)
–
(93,281)
61,440 26,315 504
–
88,259
(16,870) (76,411)
–
(93,281)
(23,663)
(120,997)
(144,660)
–
2017
(23,663)
(120,997)
(144,660)
–
2016
Total fair value
€000
Carrying value
€000
Total fair value
€000
Carrying value
€000
Level 2
** excluding accrued expenses, deferred consideration, deferred income and payments received on account
The maximum credit risk exposure relating to financial assets is represented by the carrying values at the Consolidated Statement of Financial Position date.
Fair value measurement basis for derivative financial instruments
Fair value is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.
The valuation bases are classified according to the degree of estimation required in arriving at the fair values. Level 1 valuations are derived from unadjusted quoted prices for identical assets or liabilities in active markets, level 2 valuations use observable inputs for the assets or liabilities other than quoted prices, while level 3 valuations are not based on observable market data and are subject to management estimates.
Forward exchange contracts used for hedging
The fair value of forward exchange contracts has been determined using quoted forward exchange rates at the Consolidated Statement of Financial Position date.
Interest rate swaps
Interest rate swaps are measured by reference to third party bank confirmations and discounted cash flows. Determination of fair values of non-derivative financial assets and liabilities.
Trade and other receivables and payables
Due to their short maturities, trade and other payables, and trade and other receivables have been stated at their book values which approximate to their fair values.
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