The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments identified below. The table below reflects ‘Financial instruments’ and ‘Non-current assets classified as held for sale’ carried at fair value, and those ‘Financial instruments’ and ‘Non-current assets classified as held for sale’ that have carrying amounts that differ from their fair values, in the Statement of Financial Position:
                                         
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;                  
Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly; and
Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data.
                                         
    December 2020 (Reviewed)   December 2019 (Audited)
    Total carrying   Total Fair               Total carrying   Total Fair                  
Rm   amount   Value   Level 1   Level 2   Level 3   amount   Value   Level 1   Level 2   Level 3
                                         
Financial Assets                                        
Financial assets at fair value through profit or loss     227.7     227.7       52.5     175.2     154.7     154.7       28.5     126.2
Financial assets at amortised cost               7.5     7.3       7.3  
Financial assets at fair value through OCI     0.7     0.7     0.7         0.8     0.8     0.8    
Non-current assets classified as held for sale     488.3     488.3         488.3     159.5     159.5         159.5
      716.7     716.7     0.7     52.5     663.5     322.5     322.3     0.8     35.8     285.7
                                         
Financial liabilities                                        
Financial liabilities at amortised cost     2,277.8     2,348.9       2,348.9       2,266.5     2,326.3       2,326.3  
Financial liabilities at fair value through profit or loss     500.3     500.3       500.3       37.4     37.4       37.4  
      2,778.1     2,849.2       2,849.2       2,303.9     2,363.7       2,363.7  
                                         
The Group’s unlisted investments in insurance cell-captives were previously categorised within Level 2 of the fair value hierarchy. Due to the unobservability of the lowest level input that is significant to the entire valuation the financial asset was re-categorised to Level 3 in the 2019 financial year. Other than this transfer, there were no further transfers between Level 1, Level 2 and Level 3 fair value categories during the financial period.
The financial assets and financial liabilities have been presented based on an analysis of their respective natures, characteristics and risks.
The valuation techniques and significant inputs driving the fair value determination have remained unchanged since the Group’s December 2019 year-end. For more detail in this regard, refer to the 2019 Massmart Group audited consolidated annual financial statements available on the Group’s website as well as the 2020 Massmart Group audited consolidated annual financial statements when these become available.
The Group has considered the significant unobservable inputs, the sensitivities attached to them as well as any possible interrelationship between significant unobservable inputs. Currently it is assessed that no such material inputs exist and that no reasonable movement in such an input would result in a material impact for the Group.
                                         
Fair value measurements categorised within Level 3 reconciliation                                
    Financial assets at fair value through profit or loss   Non-current assets classified as held for sale                    
                       
                                         
Rm   December 2020 (Reviewed)   December 2019 (Audited)   December 2020 (Reviewed)   December 2019 (Audited)                        
                                         
Opening balance     126.2       159.5     11.6                        
Financial assets recategorised to Level 3       100.9                            
Fair value adjustments recognised in the Income Statement     49.0     25.3       (16.9)                        
Held for sale assets sold during the period           (11.6)                        
Assets transferred as held for sale during the period         468.8     166.7                        
Held for sale assets transferred (to)/from property, plant and equipment during the period         (140.0)     9.7                        
Closing balance     175.2     126.2     488.3     159.5