Page 176 - Adopt-a-School Foundation 2016-2017 Annual Report

ADOPT-A-SCHOOL FOUNDATION NPC
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 30 June 2017

3 financial instruments (continued)

fair value estimation
b) The following table presents the changes in Level 3 instruments for the year ended 30 June 2017.

Opening balance 3 897 924
Gains recognised in profit or loss 1 234 170
Closing balance 5 132 094

The following table presents the changes in Level 3 instruments for the year ended 30 June 2016.
Opening balance 5 068 934
Loss recognised in profit or loss (1 171 010)
Closing balance 3 897 924
c) Valuation inputs and relationships to fair value

The following table summarises the quantitive information about the significant unobservable inputs used in level 3 fair value measurements.

Range of Inputs Relationship of
Fair value at unobservable (Probability-Weighted average) unobservable
Description
inputs inputs to fair
2017 2016 2016 2017 value

Implied volatilities
inferred from
market prices of
traded options
with longer
Share Price 30 -35% 30 -35% terms to maturity
Volatility
and low/high
moneyness tend
Sandvik Mining 1 400 000 1 800 000 to be higher than
Investment at the money
implied volatilities

Risk free-interest Minimal impact to
rate 3.22% 3.15% the Fair value for
any changes to
the risk-free rate
Dividend yield 5% 5% and the dividend
yield.

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