(Millions of yen) Level 1 Level 2 Level 3 Total Financial assets Financial assets at FVTPL Foreign exchange forward contracts ¥ — ¥ 87 ¥ — ¥ 87 Other — 3,826 — 3,826 Subtotal — 3,912 — 3,912 Available-for-sale financial assets Quoted equity shares 55,149 — — 55,149 Unquoted equity shares — — 22,585 22,585 Other equity securities — — 2,024 2,024 Subtotal 55,149 — 24,609 79,758 Total ¥55,149 ¥3,912 ¥24,609 ¥83,670 (Millions of yen) 2013 2014 Balance at the beginning of the year ¥25,435 ¥25,390 Realised or unrealised gains (losses) Recognised in profit or loss (1,288) (31) Recognised in other comprehensive income 450 (604) Purchases, issues, sales, and settlements Purchases 731 853 Sales (344) — Transfers to/from Level 3 — (775) Other 0 (507) Exchange differences 405 283 Balance at the end of the year ¥25,390 ¥24,609 Gains or losses recognised during the year in profit or loss attributable to the change in unrealised gains or losses relating to those assets held at the end of the period (Note) ¥ (1,064) ¥ — The movement of fair value of financial assets categorised within Level 3 of the fair value hierarchy is as follows: Available-for-sale financial assets and financial assets at FVTPL are included in “Other financial assets” in the consolidated statements  of financial position. As of 31 March 2014 (Note) Those are included in “Finance expense” in the consolidated statements of income. The financial assets categorised within Level 3 are composed  mainly of unquoted equity shares. The fair value of unquoted equity shares is measured mainly  using discounted future cash flows. The fair value of unquoted  equity shares is categorised within Level 3 because unobserv- able inputs such as estimates of future net operating profit  after tax and WACC are used for the measurement. The  WACC used for the measurement of fair value is between 6%  and 8% depending on region or industry. Generally, the fair  value would decrease if the WACC capital were higher. The fair value of unquoted equity shares is measured by  departments of the Company and each Group company in  accordance with the Group accounting policy every quarter.  The results with evidences of changes in fair value are reported  to a superior and, if necessary, to the corporate administration  and finance committee as well. In regards to financial instruments categorised within Level 3,  there would be no significant change in fair value when one or  more of the unobservable inputs is changed to reflect reasonably  possible alternative assumptions. Astellas Pharma Inc.  _ Annual Report 2014 146