FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 219 4 FINANCIAL RISK MANAGEMENT (Cont’d.) (c) Fair value estimation (Cont’d.) The following table presents the Group’s assets and liabilities that are measured at fair value at 31 December 2013 and 31 December 2012: (Cont’d.) 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 - Foreign exchange forward contracts - 969 - 969 - Commodities futures contracts 4,220 - - 4,220 Investment properties - 44,730 - 44,730 Total assets 4,220 45,699 - 49,919 Liabilities Financial liabilities at fair value through profit or loss: (i) LLA liability - - 5,644,769 5,664,769 (ii) Derivatives - Foreign exchange forward contracts - 127 - 127 - Commodities futures contracts 1,541 - - 1,541 Total liabilities 1,541 127 5,664,769 5,666,437 There were no transfers between levels 1 and 2 during the year. (i) Financial instruments in Level 1 The fair value of financial instruments traded in active markets is based on quotedmarket 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 available for sale and commodity derivatives quoted on Malaysia Derivatives Exchange (“MDEX”) for palm oil 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. If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.