28. Fair value estimation
 

A number of the Group's accounting policies and disclosures require the measurement of fair values. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Refer to note 1.20 for the accounting policy and valuation of these financial instruments.

The Group's assets and liabilities that are measured at fair value are classified into different levels based on the extent that quoted prices are used in the calculation of fair value and the levels have been defined as follows:

  • level 1: fair value based on quoted prices (unadjusted) in active markets for identical assets or liabilities;
  • level 2: fair value based on 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); or
  • level 3: fair value based on inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

The following table presents the fair value measurement hierarchy of the Group's assets and liabilities measured at fair value:

Group 2022 Level 1 Level 2 Level 3 Total
Financial asset        
Trade receivable held at fair value through profit or loss 233,407 233,407
Long-term receivable 38,663 38,663
  233,407 38,663 272,070
Group 2021 Level 1 Level 2 Level 3 Total
Financial asset        
Trade receivable held at fair value through profit or loss* 239,304 239,304
Long-term receivable 13,444 13,444
  239,304 13,444 252,748
* The prior year trade and other receivables carried at amortised cost incorrectly included R214m, which should have been included in fair value through profit or loss. The prior year disclosure has been corrected in note 11 and 27.4. This error has no other impact on the financial statements or disclosures.