117
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
for the financial year ended 31 December 2014
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
Fair value hierarchy (cont’d)
(b)
Assets and liabilities not carried at fair value but for which fair value is disclosed
(cont’d)
Group
2013
$’000
Quoted prices
in active
markets for
identical assets
Significant
unobservable
inputs
Carrying
amount
(Level 1)
(Level 3)
Assets
Investment in associate (BRC)
42,146
–
47,504
Liabilities
Obligations under finance leases
–
124
131
Bank borrowings
–
60,110
62,087
Determination of fair value
Obligations under finance leases: Fair value is estimated by discounting expected future
cash flows at market incremental lending rate for similar types of leasing arrangements at
the balance sheet date.
(c)
Fair value of financial instruments by classes that are not carried at fair value and
whose carrying amounts are not reasonable approximation of fair value
The fair value of financial assets and liabilities by classes that are not carried at fair value
and whose carrying amounts are not reasonable approximation of fair value are as follows:
Carrying amount
Fair value
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Group
Financial Assets:
Investment in associate
(POS-SEA Pte Ltd)
60
1,124
*
*
Financial liabilities:
Obligations under finance leases
67
131
63
124
Bank borrowings
12,712
62,087
12,229
60,110
