Maxis Berhad
Annual Report 2015
page
168
Notes to the Financial Statements
31 December 2015
33 FINANCIAL RISK MANAGEMENT (CONTINUED)
(e) Fair value estimation
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
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).
Level 3:
inputs for the asset or liability that are not based on observable market data (unobservable inputs).
(i)
Financial instruments carried at amortised cost
The carrying amounts of financial assets and liabilities of the Group and of the Company at the reporting date approximated their fair
values except as set out below measured using Level 3 valuation technique:
Group
Company
Note
Carrying
amount
RM’000
Fair
value
RM’000
Carrying
amount
RM’000
Fair
value
RM’000
At 31 December 2015
Financial liability:
Borrowings
- finance lease liabilities
30(a)
7,980
6,731
-
-
- Islamic Medium Term Notes
(Sukuk Musharakah)
2,485,513
2,449,777
2,485,513
2,449,777
At 31 December 2014
Financial asset:
Loan to a subsidiary
17
-
-
1,205,763
1,189,095
Financial liability:
Borrowings
- finance lease liabilities
30(a)
11,855
9,602
-
-
- Islamic Medium Term Notes
30(d)
2,484,105
2,502,657
2,484,105
2,502,657
The valuation technique used to derive the Level 3 disclosure for financial asset is based on the estimated cash flow and discount
rate of the underlying counterparty while financial liability is based on the estimated cash flow and discount rate of the Group and
the Company.
