FGV Annual Report 2015

231 WHO WE ARE & WHAT WE DO OUR STRATEGIC INTENT & PERFORMANCE HOWWE ARE GOVERNED CREATING SUSTAINABLE VALUE OUR NUMBERS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING Notes to the Financial Statements For The Financial Year Ended 31 December 2015 ADDRESSING OUR RISKS & OPPORTUNITIES Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (c) Fair value estimation (continued) 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 and available-for-sales financial assets invested in certain unit trusts. If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. (iii) Financial instruments in Level 3 The following table present the changes in recurring Level 3 financial instruments during the financial year: 2015 2014 RM’000 RM’000 LLA liability At 1 January 4,680,829 4,844,390 Fair value changes charged to profit or loss 224,861 115,240 Repayment during the year (278,495) (336,401) Additional land acquired during the year - 57,600 At 31 December 4,627,195 4,680,829 Available for sale financial assets At 1 January 218,839 201,032 Additions 9,613 - Fair value gains transferred to available-for-sale reserves 22,899 17,807 At 31 December 251,351 218,839 (d) Offsetting financial assets and financial liabilities There are no offsetting of financial assets and financial liabilities during the year for the Group and Company.