Fair value measurements

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair value measurements

Fair value measurements

(a)     Financial instruments recorded at fair value

The following tables summarize the valuation of Belmond’s financial instruments recorded at fair value by the fair value hierarchy at June 30, 2015 and December 31, 2014:

	Level 1	Level 2		Level 3	Total
June 30, 2015	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	4		—	4
Total assets	—	4		—	4
Liabilities at fair value:
Derivative financial instruments	—	(4,084	)	—	(4,084	)
Total net liabilities	—	(4,080	)	—	(4,080	)

	Level 1	Level 2		Level 3	Total
December 31, 2014	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	13		—	13
Total assets	—	13		—	13
Liabilities at fair value:
Derivative financial instruments	—	(3,602	)	—	(3,602	)
Total net liabilities	—	(3,589	)	—	(3,589	)

During the three and six months endedJune 30, 2015, there were no transfers between levels of the fair value hierarchy.

(b)    Other financial instruments

Certain methods and assumptions are used to estimate the fair value of each class of financial instruments. The carrying amount of current assets and current liabilities as disclosed on the condensed consolidated balance sheets approximate their fair value due to the short-term nature of those instruments.

The fair value of Belmond's long-term debt, excluding interest rate swaps and caps, is determined using the contractual cash flows and credit-adjusted discount curves. The fair value of the debt is the present value of those contractual cash flows which are discounted at market interest rates adjusted for credit spreads. Credit spreads take into consideration general market conditions, the maturity of flows and collateral.

The estimated carrying values, fair values, and levels of the fair value hierarchy of Belmond's long-term debt as of June 30, 2015 and December 31, 2014 were as follows:

		June 30, 2015		December 31, 2014
		Carrying amounts $’000	Fair value $’000	Carrying amounts $’000	Fair value $’000
Loans from banks and other parties (see Note 9)	Level 3	603,333	663,845	620,106	663,653

(c)    Non-financial assets measured at fair value on a non-recurring basis

There were no non-financial assets measured at fair value on a non-recurring basis in the six months endedJune 30, 2014. The estimated fair values of Belmond’s non-financial assets measured on a non-recurring basis for the six months endedJune 30, 2015 were as follows:

		Fair value measurement inputs
	Fair value $’000	Level 1 $’000	Level 2 $’000	Level 3 $’000	Total losses in the six months ended June 30, 2015
	$’000	$’000	$’000	$’000	$’000
Goodwill	—	—	—	—	(5,698	)

Goodwill

In the six months endedJune 30, 2015, goodwill of Belmond Jimbaran Puri, Belmond La Résidence Phou Vao and Belmond Northern Belle with a combined carrying value of $5,698,000 was written down to fair value of $Nil, resulting in a non-cash impairment charge of $5,698,000. See Note 7.

This impairment is included in earnings from continuing operations in the period incurred.