Page 147 - InterloopAnnualReport2021

NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

51. FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying values of the financial assets and financial liabilities approximate their fair values. Fair value is the
amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in
an arm’s length transaction.

Fair value hierarchy
Fair value is defined as the price that would be received to sell an asset or paid to settle a liability in an orderly
transaction between market participants at the measurement date.

Underlying the definition of fair value is the presumption that the Company is a going concern and there is no
intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse
terms.

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available
from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent
actual and regularly occurring market transactions on an arm’s length basis.

IFRS 13 ‘Fair Value Measurement’ requires the Company to classify fair value measurements and fair value
hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy has
the following levels:

Level 1 : Fair value measurements using quoted (unadjusted) in active markets for identical asset or liability.

Level 2 : Fair value measurements using inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 : Fair value measurements using inputs for the asset or liability that are not based on observable market
data (i.e. unobservable inputs).

Transfer between levels of the fair value hierarchy are recognized at the end of the reporting period during which
the changes have occurred.

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including
their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial
liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

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