35. FINANCIAL INSTRUMENTS (continued) (viii) Fair value information (continued) Level 3 fair value The following table shows a reconciliation of financial instrument measured at Level 3 fair values: Unquoted shares at FVOCI RM’000 At 1 January 2022 72,581 Purchase of equity investments 37,515 Translation differences 4,477 At 31 December 2022/1 January 2023 114,573 Purchase of equity investments 13,741 Conversion of convertible debt 17,902 Change in fair value 47,395 Translation differences 12,780 At 31 December 2023 206,391 Measurement of fair values The carrying amounts of financial assets and financial liabilities with a maturity of less than one year (including trade and other receivables, other financial assets, cash and cash equivalents, bank overdrafts and trade and other payables) are measured on the amortised cost basis and approximate their fair values due to their short-term nature and where the effect of discounting is immaterial. Valuation techniques and significant unobservable inputs The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used. (a) Financial instruments measured at fair value Type Valuation technique Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement Group Interest rate swaps, foreign exchange forward contracts, cross currency swaps, cross currency interest rate swaps and interest rate caps Market comparison technique: The fair values are based on valuations provided by the financial institutions that are the counterparties to the transactions. These quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at the reporting date. Not applicable Not applicable Unquoted shares at FVOCI Market comparison technique: The fair values are based on valuations of most recent transactions. Not applicable Not applicable Annual Report 2023 221
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