25 Fair value measurement and disclosures
25.1 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.
25.2 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 | |
| 2015 | 2016 |
|
|
|
Currency forwards | (4,512) | (3,748) | Level 2 | Bloomberg | (forward rate – [spot rate +/- forward points]) * amount in foreign currency |
Currency options | – | p.m. | Level 2 | Bloomberg | Black-Scholes model |
Contingent consideration | – | (9’273) | Level 3 | n/a | See note 3.2 |
There have been no transfers between the levels in 2015 and 2016.
25.3 Fair value disclosures of financial instruments measured at amortized cost
The carrying amount of financial instruments measured at amortized costs (see note 24.2) is a reasonable approximation of their fair value due to their short-term nature. Bank and other loans 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 | ||
| 2015 | 2016 | 2015 | 2016 |
|
|
|
Bank loans | (5,142) | (1,660) | (5,108) | (1,644) | Level 2 | Bloomberg | The fair value is estimated by discounting the future contractual cash flow s at the current market interest rate that is available to the Group for similar financial instruments |
Other loans | (1,919) | – | (1,996) | – | |||
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