The fair values of financial instruments traded in active markets (such as exchange traded and over-the-counter
securities and derivatives) are based on quoted market prices at the balance sheet date. The quoted market prices
used for financial assets are the current bid prices; the appropriate quoted market prices for financial liabilities are
the current asking prices.
The fair values of financial instruments that are not traded in an active market are determined by using valuation
techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions
existing at each balance sheet date. Where appropriate, quoted market prices or dealer quotes for similar instruments
are used. Valuation techniques, such as discounted cash flow analyses, are also used to determine the fair values of
the financial instruments.
The fair values of currency forwards are determined using actively quoted forward exchange rates. The fair values
of interest rate swaps are calculated as the present value of the estimated future cash flows discounted at actively
quoted interest rates. The fair values of current financial assets and liabilities carried at amortised cost approximate
their carrying amounts.