Tesco 2010 Annual Report Download - page 106

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Notes to the Group financial statements continued
Note 22 Financial instruments continued
The fair values of financial instruments have been determined by reference to prices available from the markets on which the instruments are traded.
The fair value of all other items have been calculated by discounting expected future cash flows at prevailing interest rates. The above table excludes
other receivables/payables, which have fair values equal to their carrying values.
Financial assets and liabilities by category
The accounting classifications of each class of financial assets and liabilities as at 27 February 2010 and 28 February 2009 are as follows:
Loans and
receivables/ Fair value
Available- other financial through
for-sale liabilities profit or loss Total
At 27 February 2010 £m £m £m £m
Cash and cash equivalents – 2,819 – 2,819
Loans and advances to customers – Tesco Bank – 4,112 – 4,112
Loans and advances to banks and other financial assets – Tesco Bank – 144 – 144
Short-term investments – 1,314 – 1,314
Other investments – Tesco Bank 604 259 – 863
Joint venture loan receivables (note 30) – 309 – 309
Customer deposits – Tesco Bank – (4,357) – (4,357)
Deposits by banks – Tesco Bank – (30) – (30)
Short-term borrowings – (1,484) – (1,484)
Long-term borrowings – (11,580) – (11,580)
Finance leases (Group as lessee – note 35) – (209) – (209)
Derivative financial instruments:
Interest rate swaps and similar instruments – – (92) (92)
Cross currency swaps – – 956 956
Forward foreign currency contracts – – (166) (166)
Future purchases of minority interests – – (146) (146)
604 (8,703) 552 (7,547)
Loans and
receivables/ Fair value
other financial through
liabilities profit or loss Total
Restated Restated Restated
At 28 February 2009 £m £m £m
Cash and cash equivalents 3,509 – 3,509
Loans and advances to customers – Tesco Bank 3,388 – 3,388
Loans and advances to banks and other financial assets – Tesco Bank 1,541 – 1,541
Short-term investments 1,233 – 1,233
Other investments – Tesco Bank 259 – 259
Joint venture loan receivables (note 30) 262 – 262
Customer deposits – Tesco Bank (4,538) – (4,538)
Deposits by banks – Tesco Bank (24) – (24)
Short-term borrowings (3,424) – (3,424)
Long-term borrowings (12,195) – (12,195)
Finance leases (Group as lessee – note 35) (243) – (243)
Derivative financial instruments:
Interest rate swaps and similar instruments – (161) (161)
Cross currency swaps – 1,384 1,384
Forward foreign currency contracts – 10 10
Future purchases of minority interests – (200) (200)
(10,232) 1,033 (9,199)
Fair value measurement
Effective from 1 March 2009, the Group adopted the amendment to IFRS 7 for financial instruments that are measured in the Group Balance Sheet at
fair value. This requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:
• quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
• inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that
is, derived from prices) (Level 2); and
• inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
104 Tesco PLC Annual Report and Financial Statements 2010