Annual Financial Statements 2020

56 56 19. 19.1 ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS CONTINUED Assets and liabilities at fair value Financial assets and liabilities measured at fair value The table below sets out the financial assets and liabilities measured at fair value for the company. Assets Cash and balances with 2020 2019 Level 1 N$'000 Level 2 N$'000 Level 3 N$'000 Total N$'000 Level 1 N$'000 Level 2 N$'000 Level 3 N$'000 Total N$'000 the central bank Derivative assets Trading assets Pledged assets Financial 718 860 718 860 787 698 787 698 372 288 372 288 149 910 149 910 383 240 383 240 268 177 268 177 520 956 520 956 580 098 580 098 investments 1 728 321 2 435 781 4 164 102 2 075 524 1 852 559 3 928 083 Total 3 351 377 2 808 069 6 159 446 3 711 497 2002 469 5 713 966 Liabilities Derivative liabilities 362 123 362 123 142 511 142 511 Trading liabilities 230 230 Total 230 362 123 362 353 14 881 14 881 14 881 142 511 157 392 STANDARD BANK NAMIBIA LIMITED 57 Annual financial statements 2020 44 19. Assets and liabilities at fair value continued 19.1 Financial assets and liabilities measured at fair value continued Assets and liabilities transferred between level 1 and level 2 During the year no significant assets or liabilities were transferred between level 1 and level 2 (2019: N$nil). Derivatives Options Valuation technique Black-Scholes model and discounted cash flow model or combination of both Swaps Discounted cash flow model Forward agreements Observable input Market discount rate and curves Spot prices of underlying transactions Valuation and level Level 2 Market discount rates and curves Discounted cash flow model Market discount rates and curves and correlation factors Spot prices of underlying transactions Spot prices of underlying transactions Standard derivative contracts are valued using market- accepted models and quoted parameter inputs A forward curve is used to calculate future cash flows and then discounted using a discount curve over the contractual period A forward curve is used to calculate future cash flows and then discounted using a discount curve over the contractual period Level 2 Level 2 Financial investments and trading securities Treasury bills Discounted cash flow model Market discount rates and curves Interest rate curve Future cash flows Level 2 are discounted using a market- related interest rate Money market funds Discounted cash flow model Market discount rates and curves JIBAR rate and spread Future cash flows Level 2 are discounted using a market- related interest rate Liabilities NCDs Discounted cash flow model Market discount rates and curves JIBAR rate and spread Future cash flows Level 2 are discounted using a market- related interest rate Promissory notes Discounted cash flow model Market discount rates and curves JIBAR rate and spread Future cash flows are discounted using a market- related interest rate Level 2

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