Lendlease Annual Report 2024

128 Lendlease Annual Report 2024 Notes to Consolidated Financial Statements continued 13. Other Financial Assets Accounting Policies Financial Assets at fair value through profit or loss on initial recognition are measured at fair value (generally transaction price) and subsequently stated at fair value. Transaction costs are recorded as expenses when they are incurred. Any gain or loss arising from a change in fair value is recognised in the Income Statement. Financial Assets at amortised cost are presented within Note 21 ‘Loans and Receivables’ . Fair Value June 2024 June 2023 Level 1 $m $m Current Measured at Fair Value Fair Value Through Profit or Loss - Designated at Initial Recognition Derivatives Level 2 12 32 Total current 12 32 Non Current Measured at Fair Value Fair Value Through Profit or Loss - Designated at Initial Recognition Lendlease International Towers Sydney Trust Level 3 140 155 Lendlease One International Towers Sydney Trust Level 3 47 56 Australian Prime Property Fund - Industrial Level 3 256 276 Australian Prime Property Fund - Commercial Level 3 303 380 Australian Prime Property Fund - Retail Level 3 200 57 Military Housing Projects Initiative 2 Level 3 - 167 Other investments Level 3 26 33 Derivatives Level 2 2 16 Total non current 974 1,140 Total other financial assets 986 1,172 1. Refer to Note 26 ‘Fair Value Measurement’ for detail on basis of determining fair value and valuation technique. 2. On 1 July 2024, the Group announced it had entered into an agreement, for the sale of US Military Housing Business, including Military Housing Projects Initiative. As a result, the investment was classified as Disposal Group assets held for sale at June 2024. Refer to Note 33 'Disposal Group Assets and Liabilities Held for Sale' for further detail. 13.a. Fair Value Reconciliation The reconciliation of the carrying amount for Level 3 financial assets is set out as follows: June 2024 June 2023 $m $m Carrying amount at beginning of financial year 1,124 1,149 Acquisition 151 17 Net losses recognised in Income Statement (131) (76) Transfer to Disposal Group assets held for sale (171) - Other movements (1) 34 Carrying amount at end of financial year 972 1,124 The potential effect of using reasonably possible alternative assumptions for valuation inputs would not have a material impact on the Group. Section B. Investment continued