II. Level 2 other observable inputs
Valued using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices), including: quoted prices in active markets for similar assets or liabilities, quoted prices in
markets in which there are few transactions for identical or similar assets or liabilities and other inputs that are not quoted prices but
are observable for the asset or liability, for example interest rate yield curves observable at commonly quoted intervals.
III. Level 3 unobservable inputs
Inputs for the asset or liability that are not based on observable market data (unobservable inputs) are used. Level 3 investments are
primarily unlisted private equity funds where the fair value of investments is determined on the basis of published redemption values
of those funds received from the relevant managers who themselves use various methods to value the underlying investments.
Where the determination of fair value for an instrument involves inputs from more than one category, the level within which the
instrument is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value
measurement.
CONSOLIDATED
LEVEL 1
LEVEL 2
LEVEL 3
TOTAL
$m
$m
$m
$m
2015
Interest bearing investments
4,056
10,068
1
14,125
Equity investments
636
363
143
1,142
Other investments
-
268
-
268
4,692
10,699
144
15,535
2014
Interest bearing investments
4,850
8,934
-
13,784
Equity investments
877
433
112
1,422
Other investments
-
158
-
158
Derivatives
(1)
14
-
13
5,726
9,539
112
15,377
NOTE 15. RECEIVABLES
CONSOLIDATED
2015
2014
$m
$m
A. COMPOSITION
I. Premium receivable
Premium receivable
3,290
3,357
Provision for impairment
(39)
(41)
Net premium receivable
3,251
3,316
II. Trade and other receivables
(a)
Reinsurance recoveries on paid claims
300
230
Other trade debtors
52
39
Provision for impairment
(6)
(5)
46
34
Loan to associates
(b)
102
98
Investment income receivable
88
106
Investment transactions not yet settled at reporting date
5
38
Corporate treasury derivatives receivable
3
10
Other debtors
109
112
Trade and other receivables
653
628
3,904
3,944
(a)
Other than the loan to associates, receivables are non-interest bearing and are normally settled between 30 days and 12 months. The balance has not been discounted
as the effect of the time value of money is not material. The net carrying amount of receivables is a reasonable approximation of the fair value of the assets due to the
short term nature of the assets.
(b)
This loan is denominated in Malaysian ringgit and has a fixed term of 15 years. A cumulative preference dividend of 1% is payable annually. The loan relates to the
Group's increased investment in AmGeneral to acquire Kurnia during the financial year ended 30 June 2013.
76 IAG ANNUAL REPORT 2015
