Vector Annual Report 2020

69 ―

18. Fair values continued

Description of signif icant unobservable inputs

The table below summarises the signif icant level 3 unobservable inputs used by the group in measuring fair values and related sensitivity analysis.

SENSITIVITY OF VALUATION TO CHANGES IN INPUTS

Valuation impact (millions)

Valuation impact (millions)

SIGNIFICANT UNOBSERVABLE INPUTS

RANGE AND ESTIMATES

Low

High

Investment in private equity

Forecast cashflows

$-3.6 million to $13.8 million

-10.0%

-$1.2

10.0%

+$1.2

Discount rate

9.8%

-1.0% -1.0% -1.0%

+$2.5

1.0% 1.0% 1.0%

-$1.9 +$1.4

Terminal growth rate 2.0%

-$1.1

Contingent consideration

Discount rate

8.0%

+$4.3

-$4.0 +$10.3

Future raw gas volume 210 PJ

- 2PJ per annum

-$10.3 + 2PJ per annum - $8.1 + USD $50/ tonne - $3.0 + USD $6/ barrel

LPG pricing

USD $520/tonne long-term USD $60/barrel long-term

- USD $50/ tonne - USD $6/ barrel

+$8.1

Oil pricing

+ $3.0

Notes to the Financial Statements

Made with FlippingBook Learn more on our blog