FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 193 01 02 05 03 07 06 04 08 09 ANNUAL INTEGRATED REPORT 2018 EXAMINED OUR NUMBERS 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 2018 RM’000 2017 RM’000 LLA liability At 1 January 4,393,280 4,407,564 Fair value changes charged to profit or loss 233,379 292,845 Repayment during the financial year (298,651) (307,129) At 31 December 4,328,008 4,393,280 Financial assets at fair value through other comprehensive income/ vailable-for-sale financial assets At 1 January 86,873 247,542 Additions 13,593 10,586 Disposal - (159,881) Fair value changes (17,832) - Fair value losses transferred to available-for-sale reserves - (11,374) At 31 December 82,634 86,873 (d) Offsetting financial assets and financial liabilities There are no offsetting of financial assets and financial liabilities during the financial year for the Group and Company.