Foreign exchange sensitivity analysis (4) Fair values of financial instruments (i) Fair value calculation of financial instruments Financial assets at FVTPL Loans and receivables Available-for-sale financial assets Cash and cash equivalents (ii) Financial instruments measured at fair value on a recurring basis Fair value hierarchy The financial impact on profit before tax for the years ended 31 March 2013 and 2014 in the case of a 10% increase in Japanese  yen, which is the Company’s functional currency, against the U.S. dollar and euro is as follows. Also, it is based on the assumption that currencies other than the ones used for the calculation do not fluctuate and other change  factors are held constant. The above negative amounts represent the negative impact on profit before tax in the event of a 10% appreciation in Japanese yen. Financial assets at FVTPL comprise mainly short-term debt  securities and foreign exchange forward contracts. The fair  value of those financial instruments is measured based on  prices provided by counterparty financial institutions. The carrying amount approximates fair value due to the short  period of settlement terms. The fair value of marketable securities is based on quoted  market prices at the end of the period. The fair value of  unquoted equity shares is measured mainly based on the  discounted future cash flows. The carrying amount approximates fair value due to the short  maturities of the instruments. and other payables and other financial liabilities. The carrying  amount approximates fair value due to the short period of  settlement terms. The levels of the fair value hierarchy are as follows: The level of the fair value hierarchy is determined based on  the lowest level of significant input used for the measurement  of fair value. The Group accounts for transfers between levels of the fair  value hierarchy as if they occurred at the end of each quarter. – Level 1: Fair value measured using quoted prices (unad- justed) in active markets for identical assets or  liabilities; – Level 2: Fair value measured using inputs other than quoted  prices included within Level 1 that are observable for  the assets or liabilities, either directly or indirectly;  and – Level 3: Fair value measured using significant unobservable  inputs for the assets or liabilities. Astellas Pharma Inc.  _ Annual Report 2014 144 Financial liabilities measured at amortised cost comprise trade  Financial liabilities measured at amortised cost (Millions of yen) 2013 2014 Profit before tax U.S. dollar ¥(2,741) ¥(675) Euro 96 (261)