Maxis Berhad | Annual Report 2013

Maxis Berhad | Annual Report 2013 160 33 FINANCIAL RISK MANAGEMENT (CONTINUED) (e) Fair value estimation Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). (i) Financial instruments carried at amortised cost The carrying amounts of financial assets and liabilities of the Group and of the Company at the reporting date approximated their fair values except as set out below measured using Level 3 valuation technique: GROUP COMPANY CARRYING FAIR CARRYING FAIR NOTE AMOUNT VALUE AMOUNT VALUE RM’000 RM’000 RM’000 RM’000 At 31 December 2013 Financial asset: Loans to subsidiaries 17 – – 1,205,703 1,191,154 Financial liability: Borrowings - finance lease liabilities 30(a) 11,795 8,744 – – - Islamic Medium Term Notes 30(e) 2,482,750 2,463,073 2,482,750 2,463,073 At 31 December 2012 Financial asset: Loans to subsidiaries 17 – – 1,205,486 1,192,548 Financial liability: Borrowings - finance lease liabilities 30(a) 4,921 4,604 – – The valuation technique used to derive the Level 3 is disclosed in Note 3(i) to the financial statements. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 Continued