Basis for recurring fair value measurements:
Level 1 Inputs – quoted prices (unadjusted) in active markets for identical assets or liabilities that the council can access at the measurement date.
Level 2 Inputs – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 Inputs – unobservable inputs for the asset or liability.
Some of the council's financial assets are measured at fair value on a recurring basis and are described in the following table, including the valuation techniques used to measure them.
| Financial Assets Measured as Fair Value | Input Level in Fair Value Hierarchy | Valuation Technique Used to Measure Fair Value | 31 March 2025 £000's | 31 March 2026 £000's |
|---|
| Fair value through Other Comprehensive Income | | | | |
|---|
| Equity Shareholding in Broadway Living Ltd | Level 3 | Acquisition amount | 2,136 | 2,136 |
|---|
| Total | | | 2,136 | 2,136 |
|---|
The council's shareholding in Broadway Living Ltd. The shares in this company are not traded in the active market and fair value of £2.136m is the acquisition amount at the current time as no assessment of its future trading prospects can be estimated with reasonable certainty. The fair value is not expected to be materially different to the carrying value.
Except for the financial assets carried at fair value (described in the table above), all other financial liabilities and financial assets represented by amortised cost and long-term debtors and creditors are carried on the balance sheet at amortised cost. Their fair value can be assessed by calculating the present value of the cash flows that take place over the remaining life of the instruments, using the following assumptions:
For loans from the PWLB payable, PWLB New Loan rates have been applied to provide the fair value
For non-PWLB loans payable, PWLB New Loan rates have been applied to provide the fair value
For loans receivable prevailing benchmark market rates have been used to provide the fair value
No early repayment or impairment is recognised.
Where an instrument has a maturity of less than 12 months or is a trade or other receivable the fair value is taken to be the carrying amount or the billed amount: