ANNUAL REPORT 2011 17. FINANCIAL RISK MANAGEMENT – continued Fair value measurements (continued) The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and availa- ble-for-sale securities) is based on quoted market prices at the end of the reporting period. The quoted market price used  for financial assets held by the Group is the current bid price. These instruments are included in level 1. The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is  determined using valuation techniques. These valuation techniques maximise the use of observable market data where  it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an  instrument are observable, the instrument is included in level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This  is the case for unlisted equity securities. Specific valuation techniques used to value financial instruments include: The net fair value of cash and cash equivalents and non-interest bearing financial assets and liabilities of the Group  approximate their carrying values. The carrying values (less impairment provision if provided) of trade receivables and  payable are assumed to approximate their fair values due to their short-term nature. The carrying amount of financial  liabilities approximates their fair values for which, for disclosure purposes, are estimated by discounting the future  contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.  The fair value of current borrowings approximates the carrying amount, as the impact of discounting is not significant. 73 •  quoted market prices or dealer quotes for similar instruments; •  the fair value of interest rate swaps is calculated as the present value of the estimated future cash flows; •  the fair value of forward exchange contracts is determined using forward exchange market rates at the end  of the reporting period; and •  other techniques, such as estimated discounted cash flows, are used to determine fair value for the  remaining financial instruments. Level 1  Level 2  Level 3  Total 30 June 2011  $  $  $  $ Assets  Financial assets at fair value through profit and loss  -  42,424  -  42,424 - 42,424 - 42,424 Liabilities  Derivative financial instruments used for hedging  -  59,309,642  -  59,309,642 - 59,309,642 - 59,309,642 Level 1  Level 2  Level 3  Total 30 June 2010  $  $  $  $ Assets  Financial assets at fair value through profit and loss  -  7,657,558  -  7,657,558 - 7,657,558 - 7,657,558 The following table presents the Group’s assets and liabilities measured and recognised at fair value at 30 June 2011 and  30 June 2010.