Page 196 - S P Setia Annual Report 2016

 

 

 

 

 

Page 196 - S P Setia Annual Report 2016
P. 196

194   S P Setia Berhad Group
                Annual Report 2016




          Notes To The Financial Statements

          For The Financial Year Ended 31 December 2016

          41.   FAIR VALUE 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 property development costs,
                   gross amount due from customers, inventories, 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 levels:

                   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:

                                                                        Group                      Company
                                                             Carrying amount     Fair value  Carrying amount  Fair value
                                                                   RM’000         RM’000        RM’000        RM’000
                   2016                                                           Level 2                      Level 2

                   Financial assets:
                   Amounts owing by subsidiary companies                 -             -      1,790,889            #

                   Financial liabilities:
                   Redeemable cumulative preference shares          53,513        46,537             -             -
                   Floating rate long term borrowings             3,798,538            *      1,247,767            *
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