QL Resources Berhad (428915-X)
132
28. Financial instruments (Cont’d)
28.8 Fair value information (Cont’d)
Transfers between Level 1 and Level 2 fair values
There has been no transfer between Level 1 and 2 fair values during the financial year (2015: no transfer in either
directions).
Level 2 fair value
Derivatives
The fair value of forward exchange contracts and commodity option are based on the market price obtained from
licensed financial institutions.
Level 3 fair value
The following table shows a reconciliation of Level 3 fair values:
2016 2015
RM’000 RM’000
Group/Company
Balance at 1 April 2015/2014 4,682 1,907
Gains recognised in profit or loss
Other income - realised 2,385 3,400
Gains recognised in other comprehensive income
Cash flow hedge (3,517) (625)
Balance at 31 March 3,550 4,682
The following table shows the valuation techniques used in the determination of fair values within Level 3, as well
as the key unobservable inputs used in the valuation models.
Inter-relationship
between significant
Significant unobservable
unobservable inputs and fair
Type Valuation Technique inputs value measurement
(a) Financial instruments carried at fair value
Derivative The fair value of cross currency Exchange rate The estimated fair value
used for swap and interest rate swap are at maturity would increase (decrease)
hedging based on broker quotes. Those if the foreign currency rate
quotes are tested for reasonableness were strengthen (weaken).
by discounting estimated future
cash flows based on the terms and Interest rate The estimated fair value
maturity of each contract and using (2016: 3-5%; would increase (decrease)
spot rate and market interest rates 2015: 3-5%) if the interest rate were
respectively for a similar instrument higher (lower).
at the measurement date.
Notes to the Financial Statements
(Cont’d.)
