NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT 4. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Risk exposures and responses (continued) (vi) Fair Values 5. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS We use various methods in estimating the fair value of a financial instrument� The methods comprise: As at 31 March 2013, 31 December 2012 and 31 March 2012, the only financial instruments recognised at fair value were interest rate swaps and  forward currency contracts� These are valued using a level 2 method� The fair value of the financial instruments summarised in the table below have been estimated by applying the level 2 method described above�  The preparation of the financial statements requires us to make judgements, estimates and assumptions that affect the reported amounts in the  financial statements� We continually evaluate our judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and  expenses� We base our judgements and estimates on historical experience and on other various factors we believe are reasonable under the  circumstances, the result of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other sources�  With respect to the Australian Federal Government’s Carbon Pollution Reduction Scheme, agriculture has been initially exempted, however we will  continue to monitor and assess this scheme for risks and opportunities� We have identified the following accounting policies for which significant judgements, estimates and assumptions have been made: Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the  financial position reported in future periods� Further details of the nature of these assumptions and conditions may be found in the relevant notes to the financial statements� Annual Report 2013 73 Level 1 – The fair value is calculated using quoted prices in active markets� Level 2 – The fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either  directly (as prices) or indirectly (derived from prices)� Level 3 – The fair value is estimated using inputs for the asset or liability that are not based on observable market data� Classification of perpetual and pastoral leases refer note 3 (j); Fair value determination of land refer note 3 (i); Fair value determination of livestock and crops refer note 3 (g);  Fair value determination of derivative financial instruments refer note 3 (h);  Impairment of non-financial and financial assets refer note 3 (k); and Income tax and other taxes refer note 3 (t)� 31 Mar  2013  $000 31 Dec  2012 $000 31 Mar 2012 $000 (reviewed) Financial assets Derivative instruments Commodity contracts 100 720 283 Foreign exchange contracts 444 - -  544 720  283 Financial liabilities Derivative instruments Commodity contracts 792 562 321 Interest rate swaps 4,650 6,079 1,674 5,442 6,641 1,995