MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 283 Financial Statements 36. FAIR VALUE DISCLOSURES (CONT'D.) Fair value information (cont'd.) Level 3 fair value measurements (cont'd.) The following table shows the information about fair value measurements using significant unobservable inputs within Level 3 of the fair value hierarchy: Group Corporation Fair value at 31 December 2017 Fair value at 31 December 2016 Fair value at 31 December 2017 Fair value at 31 December 2016 Valuation techniques Unobservable inputs RM'000 RM'000 RM'000 RM'000 Assets measured at fair value Non-current assets held for sale - Ships 123,003  175,035  40,595  - Market comparable approach Transacted comparable ships adjusted for the current condition of the assets/Sales price offered by potential buyers. Financial assets not measured at fair value Long term receivables 104,182  118,798  -  - Discounted cash flow method Discounting expected future cash flows applying market rate of interest at the end of the reporting period. Finance lease receivables 13,470,279  12,769,803  -  - Discounted cash flow method Discounting expected future cash flows applying latest estimated borrowing rate of the charterers. 13,574,461 12,888,601 -  -  An increase in market values of comparable assets used in the above valuation would result in an increase in the fair values and vice versa.