IE60

For assets and liabilities measured at fair value at the end of the reporting period, the IFRS requires quantitative disclosures about the fair value measurements for each class of assets and liabilities. An entity might disclose the following for assets to comply with paragraph 93(a) and (b) of the ifrs-full:

(CU in millions)						Fair value measurements at the end of the reporting period using
Description				31/12/X9		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total gains (losses)
Recurring fair value measurements
Trading equity securities:
	Real estate industry			93		70		23
	Oil and gas industry			45		45
	Other			15		15
		Total trading equity securities		153		130		23
Other equity securities:
	Financial services industry			150		150
	Healthcare industry			163		110				53
	Energy industry			32						32
	Private equity fund investments			25						25
	Other			15		15
		Total other equity securities		385		275				110
Debt securities:
	Residential mortgage-backed securities			149				24		125
	Commercial mortgage-backed securities			50						50
	Collateralised debt obligations			35						35
	Risk-free government securities			85		85
	Corporate bonds			93		9		84
		Total debt securities		412		94		108		210
Hedge fund investments:
	Equity long/short			55				55
	Global opportunities			35				35
	High-yield debt securities			90						90
		Total hedge fund investments		180				90		90
Derivatives:
	Interest rate contracts			57				57
	Foreign exchange contracts			43				43
	Credit contracts			38						38
	Commodity futures contracts			78		78
	Commodity forward contracts			20				20
		Total derivatives		236		78		120		38
Investment properties:
	Commercial - Asia			31						31
	Commercial - Europe			27						27
		Total investment properties		58						58
	Total recurring fair value measurements			1,424		577		341		506
Non-recurring fair value measurements
Assets held for sale				26				26				15
	Total non-recurring fair value measurements			26				26				15
(Note: A similar table would be presented for liabilities unless another format is deemed more appropriate by the entity.)

Reconciliation of fair value measurements categorised within Level 3 of the fair value hierarchy

IE61

For recurring fair value measurements categorised within Level 3 of the fair value hierarchy, the IFRS requires a reconciliation from the opening balances to the closing balances for each class of assets and liabilities. An entity might disclose the following for assets to comply with paragraph 93(e) and (f) of the ifrs-full:

			Fair value measurements using significant unobservable inputs (Level 3)
(CU in millions)			Other equity securities						Debt securities						Hedge fund investments		Derivatives		Investment properties
			Healthcare industry		Energy industry		Private equity fund		Residential mortgage-backed securities		Commercial mortgage-backed securities		Collateralised debt obligations		High-yield debt securities		Credit contracts		Asia		Europe		Total
Opening balance			49		28		20		105		39		25		145		30		28		26		495
	Transfers into Level 3								60														60
	Transfers out of Level 3								(5)														(5)
	Total gains or losses for the period
		Included in profit or loss					5		(23)		(5)		(7)		7		5		3		1		(14)
		Included in other comprehensive income	3		1																		4
	Purchases, issues, sales and settlements
		Purchases	1		3						16		17				18						55
		Issues
		Sales							(12)						(62)								(74)
		Settlements															(15)						( 15)
Closing balance			53		32		25		125		50		35		90		38		31		27		506
Change in unrealised gains or losses for the period included in profit or loss for assets held at the end of the reporting period							5		(3)		(5)		(7)		(5)		2		3		1		(9)
(Note: A similar table would be presented for liabilities unless another format is deemed more appropriate by the entity.)

IE62

Gains and losses included in profit or loss for the period (above) are presented in financial income and in non-financial income as follows:

(CU in millions)	Financial income			Non-financial income
Total gains or losses for the period included in profit or loss		(18)			4
Change in unrealised gains or losses for the period included in profit or loss for assets held at the end of the reporting period		(13)			4
(Note: A similar table would be presented for liabilities unless another format is deemed more appropriate by the entity.)

Valuation techniques and inputs

IE63

For fair value measurements categorised within Level 2 and Level 3 of the fair value hierarchy, the IFRS requires an entity to disclose a description of the valuation technique(s) and the inputs used in the fair value measurement. For fair value measurements categorised within Level 3 of the fair value hierarchy, information about the significant unobservable inputs used must be quantitative. An entity might disclose the following for assets to comply with the requirement to disclose the significant unobservable inputs used in the fair value measurement in accordance with paragraph 93(d) of the ifrs-full:

Quantitative information about fair value measurements using significant unobservable inputs (Level 3)
	(CU in millions)
	Description			Fair value at 31/12/X9		Valuation technique(s)		Unobservable input		Range (weighted average)
	Other equity securities:
		Healthcare industry		53		Discounted cash flow		weighted average cost of capital		7% - 16% (12.1%)
								long-term revenue growth rate		2% - 5% ( 4.2%)
								long-term pre-tax operating margin		3% - 20% (10.3%)
								discount for lack of marketability		5% - 20% ( 17%)
								control premium		10% - 30% (20%)
						Market comparable companies		EBITDA multiple		10 - 13 (11.3)
								revenue multiple		1.5 - 2.0 (1.7)
								discount for lack of marketability		5% - 20% (17%)
								control premium		10% - 30% (20%)
		Energy industry		32		Discounted cash flow		weighted average cost of capital		8% - 12% (11.1%)
								long-term revenue growth rate		3% - 5.5% (4.2%)
								long-term pre-tax operating margin		7.5% - 13% (9.2%)
								discount for lack of marketability		5% - 20% (10%)
								control premium		10% - 20% (12%)
						Market comparable companies		EBITDA multiple		6.5 - 12 (9.5)
								revenue multiple		1.0 - 3.0 (2.0)
								discount for lack of marketability		5% - 20% (10%)
								control premium		10% - 20% (12%)
		Private equity fund investments		25		Net asset value		n/a		n/a
	Debt securities:
		Residential mortgage-backed securities		125		Discounted cash flow		constant prepayment rate		3.5% - 5.5% (4.5%)
								probability of default		5% - 50% (10%)
								loss severity		40% - 100% (60%)
		Commercial mortgage-backed securities		50		Discounted cash flow		constant prepayment rate		3% - 5% (4.1%)
								probability of default		2% - 25% (5%)
								loss severity		10% - 50% (20%)
		Collateralised debt obligations		35		Consensus pricing		offered quotes		20 - 45
								comparability adjustments (%)		-10% - +15% (+5%)
	Hedge fund investments:
		High-yield debt securities		90		Net asset value		n/a		n/a
	Derivatives:
		Credit contracts		38		Option model		annualised volatility of credit		10% - 20%
								counterparty credit risk		0.5% - 3.5%
								own credit risk		0.3% - 2.0%
	Investment properties:
		Commercial - Asia		31		Discounted cash flow		long-term net operating income margin		18% - 32% (20%)
								cap rate		0.08 - 0.12 (0.10)
						Market comparable approach		price per square metre (USD)		$3,000 - $7,000 ($4,500)
		Commercial - Europe		27		Discounted cash flow		long-term net operating income margin		15% - 25% (18%)
								cap rate		0.06 - 0.10 (0.08)
						Market comparable approach		price per square metre (EUR)		€4,000 - €12,000 (€8,500)
	(Note: A similar table would be presented for liabilities unless another format is deemed more appropriate by the entity.)

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