KENANGA ANNUAL REPORT 2020

299 ANNUAL REPORT 2020 // KENANGA INVESTMENT BANK BERHAD 51. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value measurement The Group and the Bank use the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1 - quoted (unadjusted) market prices in active for identical assets or liabilities. Level 2 - other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3 - techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data. Group 2020 Level 1 RM’000 Level 2 RM’000 Level 3 RM’000 Total RM’000 Financial assets measured at fair value Financial assets at FVTPL - Debt securities - 138,057 - 138,057 - Equity securities 351,645 5,384 48,453 405,482 Financial investments at FVOCI - Debt securities - 769,742 - 769,742 - Equity securities - - 1,990 1,990 Derivative financial assets 135 95,436 - 95,571 Financial assets for which fair values are disclosed Financial investments at AC - 202,215 - 202,215 Loans, advances and financing - - 1,867,339 1,867,339 351,780 1,210,834 1,917,782 3,480,396 Financial liability measured at fair value Derivative financial liabilities 131,241 6,239 - 137,480 Financial liabilities for which fair values are disclosed Borrowings - 154,413 - 154,413 131,241 160,652 - 291,893