164

Group and Scottish Enterprise financial assets that are valued at fair value are defined as follows:

Quoted prices (unadjusted) in active markets for identical assets or liabilities.

LEVEL 2 Inputs other than quoted prices included within level 1 that are observable for the asset or liability (i.e. as prices) or indirectly (i.e. derived from prices).

Inputs other than quoted prices included within level 1 that are observable for the asset or liability (i.e. as prices) or indirectly (i.e. derived from prices).

LEVEL 3 Inputs for the asset or liability that are not based on observable market data (i.e. unobservable market inputs).

Inputs for the asset or liability that are not based on observable market data (i.e. unobservable market inputs).

During the year, the Group reclassified its investment held via Fastball Holdings LLC from Level 1 to Level 3. This followed confirmation that Fastball has sold all of its Flutter Entertainment plc shares and now holds only cash and cash equivalents. As a result, the valuation is no longer based on quoted market prices but on the Group's pro-rata entitlements to Fastball's net assets.

All material financial assets are defined as level 3 instruments except for those listed on a recognised stock exchange. Fair values of financial assets are determined at the end of each financial year by suitably qualified professionals within Scottish Enterprise using recognised valuation techniques.

Scottish Enterprise engages external independent valuers to determine the fair value of the land and buildings that are classified as property plant and equipment at the end of each financial year.

The following tables set out the reconciliation of the opening and closing balances for level 3 fair value measurements as at 31 March: