FGV Annual Report 2012

43 F i n a n c i a l S t a t e m e n t s 2 0 1 2 P e n y a t a K e w a n g a n 4 FINANCIAL RISK MANAGEMENT (continued) (c) Fair value estimation Financial instruments that are measured in the statement of financial position at fair value are disclosed by the following fair value measurement hierarchy: • Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1). • Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). • Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). The following table presents the Group’s assets and liabilities that are measured at fair value at 31 December 2012 and 31 December 2011. 2012 Level 1 Level 2 Level 3 Total RM’000 RM’000 RM’000 RM’000 Assets Financial assets at fair value through profit or loss: – Derivatives 4,220 969 – 5,189 Total assets 4,220 969 – 5,189 Liabilities Financial liabilities at fair value through profit or loss: – LLA liability – – 5,664,769 5,664,769 – Derivatives 1,541 127 – 1,668 Total liabilities 1,541 127 5,664,769 5,666,437 2011 Level 1 Level 2 Level 3 Total RM’000 RM’000 RM’000 RM’000 Assets Financial assets at fair value through profit or loss: – Derivatives 2,051 791 – 2,842 Total assets 2,051 791 – 2,842 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 ICE Futures U.S. Sugar No 11 Contracts and Malaysia Derivatives Exchange (“MDEX”) palm oil derivatives.