Classes and categories of financial instruments and their fair values
The following table combines information about:
- Classes of financial instruments based on their nature and characteristics;
- The carrying amounts of financial instruments;
- Fair values of financial instruments (except financial instruments when carrying amount approximates their fair
value); and
- Fair value hierarchy levels of financial assets and financial liabilities for which fair value was disclosed.
| |
|
|
Financial assets |
Financial
liabilities |
Fair value level |
| |
Notes |
|
FVTPL –
mandatorily
measured
R’000 |
FVTPL –
mandatorily
measured
R’000 |
1 |
2 |
3 |
| Surety loan receivable |
3.5 |
|
131 870 |
|
|
|
131 870 |
| Class B Preference Shares |
3.5 |
|
|
46 482 |
|
|
46 482 |
| SPV5 derivative liability |
3.5 |
|
|
11 238 |
|
|
11 238 |
| Escrow receivable |
3.5 |
|
25 063 |
|
|
|
25 063 |
There have been no transfers in or out of level 3.
Fair value of the Company’s financial assets and financial liabilities that are measured at fair value on a recurring
basis
Some of the Company’s financial assets and financial liabilities are measured at fair value at the end of each
reporting period. The following table gives information about how the fair values of these financial assets and
financial liabilities are determined.
| |
|
|
|
Sensitivity analysis of
valuations using
unobservable inputs |
Financial
asset/
liability |
Valuation technique
applied |
Significant
unobservable
inputs
applied |
Range of
unobservable
inputs
applied |
Positive/
(negative)
variance
applied to
parameters* |
Potential
effect on
profit or loss
and equity
R’000 |
| Class B
Preference
Share |
Discounting of cash flow
after taking into account
credit risk of Cell C |
Probability
of default
of Cell C |
10.11% – 12.35%
PD range |
10/(10)% |
(4 648) – 4 648 |
| SPV5
derivative
liability |
Discounting of cash flow
after taking into account
credit risk of Cell C |
Probability
of default
of Cell C |
5% – 56.86%
LGD range |
10/(10)% |
804 – (804) |
| Escrow
receivable |
Discounting of post churn
cash flows after taking into
account the credit risk of the
book sold to ABL |
Probability of
default of the
debtors book
sold |
80 – 100%
PD range |
10/(10)% |
(3 888) – 3 888 |
| * |
A significant parameter has been deemed to be one which may result in a charge to profit or loss, or a change in the fair value of the
asset or liability by more than 10% of the underlying value of the affected item. |
Credit risk of financial instruments designated at fair value
The following table represents the maximum exposure to credit risk of financial liabilities linked to the credit risk of
another counterparty:
| |
|
Counterparty credit risk exposure |
Maximum exposure to credit risk |
| Class A Preference Share |
|
Cell C |
180 254 |
|
