FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD FINANCIAL STATEMENTS 184 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (c) Fair value estimation (continued) (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. (iii) Financial instruments in Level 3 The following table present the changes in recurring Level 3 financial instruments during the financial year: Group 2017 RM’000 2016 RM’000 LLA liability At 1 January 4,407,564 4,627,195 Fair value changes charged to profit or loss 292,845 68,275 Repayment during the financial year (307,129) (287,906) At 31 December 4,393,280 4,407,564 Available for sale financial assets (investment in certain unit trusts) At 1 January 247,542 251,351 Additions 10,586 5,488 Disposal (159,881) - Liquidation of a subsidiary - (1,613) Fair value changes transferred to available-for-sale reserves (11,374) (7,684) At 31 December 86,873 247,542