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Budget 2024: The Government has announced FamilyBoost, a proposed new childcare payment to help eligible families with the rising costs of Early Childhood Education (ECE). Find out more:

For those instruments recognised at fair value in the Statement of financial position, fair values are determined according to the following hierarchy.

  1. 1. Quoted market price (level 1) - financial instruments with quoted prices for identical instruments in active markets
  2. 2. Valuation technique using observable inputs (level 2) - financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable
  3. 3. Valuation techniques with significant non-observable inputs (level 3) - financial instruments valued using models where one or more significant inputs is not observable.

Inland Revenue’s departmental financial assets and liabilities as at 30 June 2021 and 2020 were valued at fair value using observable inputs (level 2). There are no quoted market prices (level 1) for these instruments.

The following table analyses the basis of the valuation of classes of financial instruments measured at fair value.

The fair value of derivative financial instruments has been determined using discounted cash flows based on quoted market prices (level 2).

Last updated: 02 Nov 2021
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