200 | S P SETIA BERHAD GROUP | Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2014
V. FINANCIAL STATEMENTS
45. FAIRVALUE OF FINANCIAL INSTRUMENTS
(a) Classification of financial instruments
The Group’s and the Company’s financial assets are categorised as loans and receivables except for other investments which are
categorised as available-for-sale and gross amount due from customers, accrued billings and prepayments which are categorised as
other current assets.
The Group’s and the Company’s financial liabilities are categorised as financial liabilities measured at amortised cost except for gross
amount due to customers and progress billings which are categorised as other current liabilities.
(b) Determination of fair value
The fair value of a financial instrument is the amount at which the instrument could be exchanged or settled between knowledgeable
and willing parties in an arm’s length transaction, other than in forced or liquidation sale.
Fair value hierarchy
The table below analyses financial instruments carried at fair value, by revaluation method. The fair value hierarchy has the following
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices); and
Level 3: Inputs for the asset or liability that is not based on observable market data (unobservable inputs).
The carrying amounts and fair values of the long term financial assets and liabilities of the Group and of the Company at the reporting
date are as follows:
Amounts owing by subsidiary companies
Amount owing by a former joint venture partner
Redeemable cumulative preference shares
Fixed rate long term borrowings
Floating rate long term borrowings