Page 97 - Stellar IAR2015

32. FAIR VALUE INFORMATIONIn accordance with IFRS 13, nancial instruments measured at fair value in the statement of nancial position are grouped into three levels of a fair value hierarchy. The three levels are de ned based on the observability of signi cant inputs to the measurement as follows: • Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets and liabilities; • Level 2 fair value adjustments are those derived from inputs other than quoted prices included within Level 1 that are observablefor the asset or liability, either directly or indirectly (i.e. derived from prices); and• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that arenot based on observable market data (unobservable inputs).The table below analyses the Group’s assets which are held at for value through pro t or loss and therefore fall within the scope of the fair value hierarchy:R’000Financial assets at fair value through pro t or loss - 2015Torre Industries LtdMine Restoration Investments Ltd Tellumat (Pty) LtdCadiz Holdings LtdIntegrated Equipment Rentals (Pty) Ltd Praxis Financial Services (Pty) LtdR’000Financial assets at fair value through pro t or loss - 2014Goliath Gold LtdMine Restoration Investments LtdLevel 1- - - - - - -Level 1316 2 951 3 267Level 2- - - - - - -Level 2- - -Level 3900 833 14 026 100 119 134 390 - - 1 149 368Level 3- - -Total900 833 14 026 100 119 134 390 - - 1 149 368Total316 2 951 3 267During the current year the fair values of Torre and MRI were determined using observable and unobservable inputs and as such have been classi ed as a level 3 fair value measurements, despite being listed investments. Reasons for not using quoted closing market prices at year end have been detailed in note 3.During the current year the investment of R2.9 million in MRI was transferred from level 1 to level 3. In the current year the quoted closing market price of MRI was not considered to be an appropriate basis for valuation due to lack of liquidity and market activity. The closing quoted market price was therefore adjusted accordingly and as a result the investment is classi ed as level 3. Transfers between levels occur when there has been an event or change in circumstances. During the year the operations of MRI were put under care and maintenance as per the SENS announcement dated 20 July 2015.R’000Reconciliation of level 3 movements Opening balanceAdditionsDisposalsTransfers from level 1Fair value lossesTransferred to disposal group held for sale2014131 - - - - (131) -2015- 1 425 513 (258 078) 3 267 (21 334) -1 149 368STELLAR CAPITAL PARTNERS | 93