Level 3 inputs are unobservable supported by little

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ecember 31, 2012 include: KINROSS GOLD 2012 ANNUAL REPORT FS37 L evel 1 Available-for-sale investments Embedded derivatives Derivative instruments $ $ Level 2 49.1 $ (0.2) 4 8.9 $ Level 3 $ (7.7) (7.7) $ - Aggregate Fair Value $ 49.1 (0.2) (7.7) $ 41.2 The valuation techniques that are used to measure fair value are as follows: Available-for-sale investments: The fair value of available-for-sale investments is determined based on a market approach reflecting the closing price of each particular security at the balance sheet date. The closing price is a quoted market price obtained from the exchange that is the principal active market for the particular security, and therefore available-for-sale investments are classified within Level 1 of the fair value hierarchy. Embedded derivatives: The Company determines the fair value of the embedded derivative related to its Canadian dollar denominated common share purchase warrants based on the closing price that is a quoted market price obtained from the exchange that is the principal active market for the warrants, and therefore is classified within Level 1 of the fair value hierarchy. The Company determines the fair value of the embedded derivative related to the conversion options on its convertible senior notes based on pricing models which use a number of observable market-determined variables. These embedded derivatives are classified within Level 2 of the fair value hierarchy. Derivative instruments: The fair value of derivative instruments is based on quoted market prices for comparable contracts and represents the amount the Company would have received from, or paid to, a counterparty to unwind the contract at the market rates in effect at the balance sheet date and therefore derivative instruments are classified within Level 2 of the fair value hierarchy. FS38 KINROSS GOLD 2012 ANNUAL REPORT ii Derivative instruments December 31, 2012 December 31, 2011 A sset / (Liability) Asset / (Liability) Fair Value Interest rate contracts Interest rate swaps (a) (i) Fair Value AOCI (2.7) $ (2.5) $ (7.3) (1.8) (75.1) (54.4) 2 .5 2.0 1...
View Full Document

Ask a homework question - tutors are online