FGV Annual Report 2014

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 2014 and 31 December 2013: (continued) Group Level 1 Level 2 Level 3 Total 2013 RM’000 RM’000 RM’000 RM’000 Assets Financial assets at fair value through profit or loss: (i) Derivatives – Foreign exchange forward contracts – 1,841 – 1,841 – Commodities futures contracts 1,658 – – 1,658 (ii) Trading securities 12,955 – – 12,955 Available-for-sale financial assets 24,273 – 201,032 225,305 Total assets 38,886 1,841 201,032 241,759 Liabilities Financial liabilities at fair value through profit or loss: (i) LLA liability – – 4,844,390 4,844,390 (ii) Derivatives – Foreign exchange forward contracts – 13,631 – 13,631 – Commodities futures contracts 1,730 – – 1,730 Total liabilities 1,730 13,631 4,844,390 4,859,751 Disclosures for property, plant and equipment and investment in a joint venture measured at fair value are disclosed at Note 19 and Note 24 respectively. The Company has no financial assets and liabilities that are measured at fair value at 31 December 2014 and 31 December 2013. 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 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 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. Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 209