Page 99 - Stellar IAR2015

32. FAIR VALUE INFORMATION (Continued)Tellumat (Pty) LtdThe Tellumat investment has been valued by reference to the price of recent transactions at Transaction Value and by using a discounted cash ow model. The reasonably possible change in fair value (holding all other variables constant) was determined with reference to adjustments to the WACC inputs as follows:• A 10% increase / (decrease) to the target debt/equity ratio• A 0.1 decrease / (increase) to the Beta• A 1% decrease / (increase) to the range of the unsystematic risk premium • A 1% increase / (decrease) to the range of the terminal growth rateCadiz Holdings LtdThe Cadiz investment has been valued by reference to the price of recent transactions at Transaction Value and by using a discounted price to book value. The reasonably possible change in fair value (holding all other variables constant) was determined with reference to an adjustment of a 5% decrease / (increase) to the NAV discount.Integrated Equipment Rentals (Pty) LtdThe fair value is estimated to be nil given that assets, when fairly valued, are exceeded by liabilities. As a result, there are no signi cant inputs which are subject to a sensitivity analysis.Praxis Financial Services (Pty) LtdThe fair value is estimated to be nil given that assets, when fairly valued, are exceeded by liabilities. As a result, there are no signi cant inputs which are subject to a sensitivity analysis.R’000Reconciliation of fair value measurements Opening balanceAdditionsDisposalsFair value (losses) / gainsTransferred to disposal group held for saleFinancial assets measured at amortised cost2014131 14 587 (11 734) 414 (131) 3 26720153 267 1 425 513 (258 078) (21 334) -1 149 368Financial assets that are not measured at fair value, namely loan investments, loans to portfolio companies, loans to Consolidated Subsidiaries, trade and other receivables and cash and cash equivalents, are categorised as loans and receivables. It has been concluded that the carrying amounts of these assets approximate their fair values (refer to notes 4, 5, 7, 9, 10 and 11).Financial liabilities measured at amortised costFinancial liabilities that are not measured at fair value, namely the preference share liability and trade and other payables, are categorised as other nancial liabilities. It has been concluded that the carrying amount of these liabilities approximate their fair values (refer to notes 13 and 15).STELLAR CAPITAL PARTNERS | 95