AXIOM MINING LIMITED
ANNUAL REPORT 2015
Notes to the
for the year ended 30 September 2015
GROUP FINANCIAL REPORT
26. Fair value
The Group measures and recognises the following assets and liabilities at fair value on a recurring basis after initial
Embedded derivative liability (at fair value);
The Group does not subsequently measure any liabilities at fair value on a non-recurring basis.
Fair value hierarchy
Fair Value Measurement
requires the disclosure of fair value information by level of the fair value hierarchy,
which categorises fair value measurements into one of three possible levels based on the lowest level that an input that is
significant to the measurement can be categorised into as follows:
Measurements based on quoted
prices (unadjusted) in active markets
for identical assets or liabilities
that the entity can access at the
Measurements based on inputs other
than quoted prices included in Level
1 that are observable for the asset
or liability, either directly or indirectly.
Measurements based on unobservable
inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation
techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all
significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more
significant inputs are not based on observable market data, the asset or liability is included in Level 3.
The Company’s embedded derivative liabilities are valued using Level 2, as follows:
Embedded derivative liability (fair value)