Annual Report 2020

31. Financial instruments (continued) 31.8 Fair value information (continued) 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 (2019: 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: 2020 RM’000 2019 RM’000 Group/Company Balance at 1 April (13,026) (33,773) Gain recognised in other comprehensive income Cash flow hedge 13,477 20,747 Balance at 31 March (451) (13,026) Annual Report | 2020 QL Resources Berhad 202 Notes To The Financial Statements