ITF

NOTES (CONT.) (FORMING PART OF THE FINANCIAL STATEMENTS) 36. Financial instruments (a) Fair values of financial instruments Investments in debt and equity securities Trade and other receivables Trade and other payables Cash and cash equivalents Derivative financial instruments Fair values Carrying amount Fair value Carrying amount Fair value 2019 2019 2018 2018 $000 $000 $000 $000 Financial assets Held at amortised cost Cash and cash equivalents 5,543 5,543 28,749 28,749 Trade receivables 14,886 14,886 8,453 8,453 Other receivables and contract assets 6,817 6,817 3,394 3,394 Held at fair value through profit or loss Financial assets at FVPL 61,010 61,010 60,280 60,280 Derivative financial instruments - cash flow hedges 718 718 - - Total financial assets 88,974 88,974 100,876 100,876 Carrying amount Fair value Carrying amount Fair value 2019 2019 2018 2018 $000 $000 $000 $000 Financial liabilities Held at amortised cost Trade payables 6,472 6,472 2,368 2,368 Other payables 274 274 141 141 Other taxation and social security 768 768 732 732 Provisions 519 519 519 519 Accruals 9,633 9,633 10,974 10,974 Lease liabilities 1,996 1,996 - - Derivative financial instruments - cash flow hedges - - 1,630 1,630 Total financial liabilities 19,662 19,662 16,364 16,364 The fair value of financial assets at fair value through profit or loss is determined by reference to their quoted bid price at the balance sheet date. The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at the balance sheet date if the effect is material. The fair values for each class of financial assets and financial liabilities together with their carrying amounts shown in the balance sheet are as follows: The fair value of forward exchange contracts is based on their listed market price, if available. If a listed market price is not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on government bonds). The fair value of trade and other payables is estimated as the present value of future cash flows, discounted at the market rate of interest at the balance sheet date if the effect is material. The fair value of cash and cash equivalents is estimated as its carrying amount where the cash is repayable on demand. Where it is not repayable on demand then the fair value is estimated at the present value of future cash flows, discounted at the market rate of interest at the balance sheet date. 28

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