35. Fair value of assets and liabilities (cont’d)
(b) Assets and liabilities measured at fair value (cont’d)
Group
2014
$’000
Fair value measurements at the end of the
reporting period using
Quoted prices
in active
markets for
identical
instruments
(Level 1)
Significant
observable
inputs other
than quoted
prices
(Level 2)
Significant
unobservable
inputs
(Level 3)
Total
Financial liabilities
Derivatives
- Forward currency
contracts (Note 12)
–
*
–
*
- Interest rate swap
(Note 12)
–
(2)
–
(2)
Financial liabilities as
at 30 June 2014
–
(2)
–
(2)
* Denotes amount less than $1,000.
There have been no transfers between Level 1, Level 2 and Level 3 during 2015
and 2014.
Level 2 fair value measurements
Valuation techniques and inputs used in the fair value measurement for assets and
liabilities that are categorised within Level 2 of the fair value hierarchy are as follows:
Derivatives
Forward currency contracts and interest rate swap contracts are valued using a
valuation technique with market observable inputs. The most frequently applied
valuation techniques include forward pricing and swap models, using present value
calculations. The models incorporate various inputs including the credit quality of
counterparties, foreign exchange spot and forward rates, interest rate curves and
forward rate curves.
(c) Fair value of financial instruments by classes that are not carried at fair value
and whose carrying amounts are a reasonable approximation of fair value
The Group’s financial assets and liabilities include cash and bank balances, trade
and other receivables, trade and other payables, trust receipts, floating rate loans
and current portion of fixed rate loans.
The carrying amount of these financial assets and liabilities are reasonable
approximation of fair values, because these are short-term in nature or that they are
floating rate instruments that are repriced to market interest rates on or near to the
end of the reporting period.
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
160
