ANNUAL REPORT 2014
109
NOTES TO THE
FINANCIAL STATEMENTS
35. Financial risk management (continued)
35.4 Fair value information
The carrying amounts of cash and cash equivalents, short-term receivables and payables and short term
borrowings reasonably approximate fair values due to the relatively short-term nature of these financial
instruments.
Fair value of financial instruments
carried at fair value
Fair value of financial instruments
not carried at fair value
Total
fair
value
Carrying
amount
Group
Level 1 Level 2 Level 3 Total
Level 1 Level 2 Level 3 Total
2014
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Financial assets
Forward exchange contracts
-
901
-
901
-
-
-
-
901
901
Liquid investment with
licensed financial
institutions
- 78,506
- 78,506
-
-
-
- 78,506 78,506
- 79,407
- 79,407
-
-
-
- 79,407 79,407
Financial liabilities
Forward exchange contracts
-
(75)
-
(75)
-
-
-
-
(75)
(75)
2013
Financial assets
Forward exchange contracts
-
66
-
66
-
-
-
-
66
66
Financial liabilities
Forward exchange contracts
-
(247)
-
(247)
-
-
-
-
(247)
(247)
Level 1 fair value
Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical financial assets or
liabilities that the entity can access at the measurement date.
Level 2 fair value
Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are
observable for the financial assets or liabilities, either directly or indirectly.
Derivatives
The fair value of forward exchange contracts is estimated by discounting the difference between the
contractual forward price and the current forward price for the residual maturity of the contract using a risk-
free interest rate (based on government bonds).
Transfers between Level 1 and Level 2 fair values
There has been no transfer between Level 1 and 2 fair values during the financial year (2013: no transfer in
either directions).
