Kimlun Corporation Berhad Annual Report 2017

Kimlun Corporation Berhad 110 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 (cont’d) 33. Fair value (a) Fair value of assets that are disclosed at fair value The following table shows an analysis of asset disclosed at fair value by level of fair value hierarchy: Group Level 1 Level 2 Level 3 Total RM RM RM RM 2017 Investment properties - - 10,026,000 10,026,000 Other investments 294,669 - - 294,669 2016 Investment properties - - 6,060,000 6,060,000 Other investments 180,431 - - 180,431 The fair values of investment properties are determined by the Directors based on estimated current price in an active market. (b) Financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value The following are classes of financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value: Note Trade and other receivables (current) 20 Cash and bank balances (current) 23 Loans and borrowings (current) 24 Loans and borrowings (non-current) 24 Trade and other payables (current) 25 The carrying amounts of these financial assets and liabilities of the Group and of the Company at the reporting date approximate fair values due to the relatively short term maturity of these financial instruments whilst the carrying value of long term borrowings is estimated to be approximate the fair value estimated based on the current rates available for borrowing with the same maturity profile. Fair value of retention sums on construction contract are estimated by discounting expected future cash flows at market incremental lending rate at the reporting date. Guarantees The fair value of the guarantees provided by the Company in connection with credit facilities, construction contracts and development agreement granted to its subsidiaries is estimated to be minimal as the chances of the financial institutions and third parties to call upon the guarantees are not probable.