4 FINANCIAL RISK MANAGEMENT (CONTINUED) (c) Fair value estimation (continued) The following table presents the Group’s financial assets and liabilities that are measured at fair value at 31 December 2024 and 31 December 2023 (continued): Group 2023 Level 1 RM’000 Level 2 RM’000 Level 3 RM’000 Total RM’000 Assets Financial assets at fair value through profit or loss: (i) Derivatives – Foreign currency forward contracts – 4,823 – 4,823 – Commodities futures contracts 7,112 – – 7,112 (ii) Trading securities 95,197 – – 95,197 Financial assets at fair value through other comprehensive income 3,257 – 157,716 160,973 Total assets 105,566 4,823 157,716 268,105 Liabilities Financial liabilities at fair value through profit or loss: (i) LLA liability – – 3,513,813 3,513,813 (ii) Derivatives – Foreign currency forward contracts – 388 – 388 – Islamic profit rate swap – 11 – 11 – Commodities futures contracts 15 – – 15 Total liabilities 15 399 3,513,813 3,514,227 The Company has no financial assets and liabilities that are measured at fair value at 31 December 2024 and 31 December 2023. There were no transfers between Levels 1 and 2 during the financial year. (i) Financial instruments in Level 1 The fair value of financial instruments traded in active markets is based on quoted market prices at the statement of financial position date. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1. Instruments included in Level 1 comprise primarily equity investments listed in Bursa Malaysia Securities Berhad or foreign stock exchanges classified as trading securities or financial assets at fair value through other comprehensive income and commodity derivatives quoted on Malaysia Derivatives Exchange (“MDEX”) for palm oil, sugar commodity futures contracts, brent crude oil option contracts and other foreign commodity exchanges. (ii) Financial instruments in Level 2 The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. Instruments included in Level 2 comprise foreign currency forward contracts and Islamic profit rate swap. If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. FGV Holdings Berhad | Audited Financial Statements 2024 Notes to the Financial Statements For the financial year ended 31 December 2024 68
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