Tecan Annual Report
Tecan Annual Report

29  FAIR VALUE MEASUREMENT AND DISCLOSURES

29.1  FAIR VALUE HIERARCHY

To increase consistency and comparability in fair value measurements and related disclosures, IFRS 13 established a fair value hierarchy that categorizes into three levels the inputs to valuation techniques used to measure their value.

 

Level 1 inputs: Quoted prices (unadjusted) in active markets for identical assets and liabilities that the Group can access at the measurement date.

Level 2 inputs: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 inputs: Unobservable inputs for the asset or liability.

 

There have been no transfers between the levels in 2021 and 2022 .

 

29.2  ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS AFTER INITIAL RECOGNITION

The following table shows the valuation techniques used in the determination of fair values for assets and liabilities measured at fair value on a recurring basis after initial recognition:

 

Position

Net carrying amount in balance sheet measured at fair value

(CHF 1,000)

Level

Data source

Model

Change in fair 
value recognized 
in position

 

31.12.2021

31.12.2022

 

 

 

 

Currency forwards

346

 1,515 

Level 2 

Financial

data supplier 

(Forward rate - [spot rate +/- SWAP points]) * amount in foreign currency

Financial result 

Unquoted equity 
investment

 4,223 

4,225 

Level 3

n/a

Market sales multiples

Other 
comprehensive income (FVOCI) 

Unquoted equity investment – level 3 inputs: End of 2020, the Group acquired an unquoted equity instrument for CHF 4.3 million. Total changes in fair value recognized during the period in other comprehensive income amount to CHF 0.0 million. A decrease in the forecasted sales of 10% would adversely impact the fair value by estimated CHF 0.4 million.

 

29.3  FAIR VALUE DISCLOSURES FOR FINANCIAL INSTRUMENTS MEASURED AT AMORTIZED COST

The carrying amount of financial instruments measured at amortized costs (see note 28.2) is a reasonable approximation of their fair value due to their short-term nature. Bank loans and the bond are the only exception due to their long-term nature. Their fair values are disclosed in the following table.

 

Position

Net carrying amount in balance sheet measured at amortized cost (CHF 1'000)

Fair value disclosure 
(CHF 1,000)

Level

Data source

Model

 

31.12.2021

31.12.2022

31.12.2021

31.12.2022

 

 

 

Bank loans

 (654) 

 (623) 

 (647) 

 (607) 

Level 2

Financial

data supplier 

The fair value is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.

Bond

(249,507)

(249,645)

(250,500)

(237,000)

Level 1

Financial

data supplier 

Market value available at SIX (security 
symbol TEC21)