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Unformatted text preview: ecember 31, 2012
KINROSS GOLD 2012 ANNUAL REPORT FS37 L evel 1
Derivative instruments $ $ Level 2
4 8.9 $ Level 3
(7.7) $ - Aggregate Fair
41.2 The valuation techniques that are used to measure fair value are as follows:
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.
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
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.
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...
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