HG Metal Manufacturing Ltd - Annual Report 2015 - page 117

33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONTINUED)
(a)
Assets and liabilities measured at fair value (continued)
Group
2014
$’000
Quoted prices
in active
markets for
identical
instruments
Significant
observable
inputs other
than quoted
prices
Total
(Level 1)
(Level 2)
Recurring fair value measurements
Assets
Financial assets:
Investment held for trading
– Equity instruments (quoted)
110
110
As at 31 December 2014
110
110
Level 2 fair value measurements
The following is the description of the valuation techniques and inputs used in the fair value
measurement for assets and liabilities that are categorised within level 2 of the fair value
hierarchy:
Derivatives
Forward currency contracts are valued using a valuation technique with market observable
inputs. The most frequently applied valuation techniques include forward pricing, using
present value calculations. The models incorporate various inputs including the credit quality
of counterparties, foreign exchange spot and forward rates and forward rate curves.
115
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
1...,107,108,109,110,111,112,113,114,115,116 118,119,120,121,122,123,124,125,126,127,...161
Powered by FlippingBook