IOOF  | Annual Report 2012 (b) Interest rates used for determining fair value 2012 2011 Finance lease liabilities 4.7%  5.3% - 9.5%  (c) Fair value hierarchy The table below analyses financial instruments carried at fair value, by valuation method. The Parent does not carry any assets at fair value. The different levels have been defined as follows: •  Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities •  Level 2: inputs other than quoted prices included with Level 1 that are observable for the asset or liability, either directly (ie. as  prices) or indirectly (ie. derived from prices) •  Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). 30 June 2012 Consolidated Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 Available-for-sale investments 28,577  - - 28,577  Financial assets designated at fair value through profit or loss 3,000  5,029  - 8,029  31,577  5,029  - 36,606  Liabilities Share buy-back liabilities - - 43,112 43,112 - - 43,112 43,112 Reconciliation of movements in level 3 financial liabilities Share buy-back liabilities 2012 2011 $’000 $’000 Opening balance as at 1 July 43,112 37, 357 Dividends paid to shareholders entitled to contractual share buy-back (3,463) (4,357) Settlement of share buy-back liability (6,740) - Revaluation of shareholder liabilities (5,063) 10,112 Closing balance as at 30 June 27, 8 4 6 43,112 Assets 30 June 2011 Available-for-sale investments 7,177 - - 7,177 Financial assets designated at fair value through profit or loss 2,797  2,808  - 5,605  9,974  2,808  - 12,782  Liabilities Share buy-back liabilities - - 27, 8 4 6 27, 8 4 6 - - 27, 8 4 6 27, 8 4 6 Assets For further information on valuation methods for Level 3 financial instruments refer to note 4(e) fair valuation estimation. page 81