MKH Annual Report 2020

232 FINANCIAL STATEMENTS ANNUAL REPORT 2020 44. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONT’D) (iii) Other investment The fair value of other investment in quoted shares is estimated based on the market value as at the end of the reporting period. (iv) Lease liability The fair value of this financial instrument is estimated based on future contractual cash flows discounted at incremental borrowing rate for similar type of borrowing at the end of the reporting period. (v) Borrowings The carrying amounts of bank overdrafts, short-term revolving credits, bridging loan and short-term loans approximate fair values due to the relatively short-term maturity of these financial liabilities. The carrying amounts of long-term floating rate revolving credits and loans approximate their fair values as the loans will be re-priced to market interest rate on or near reporting date. The fair value of hire purchase liabilities is estimated using discounted cash flow analysis, based on current lending rates for similar types of lending arrangements. The carrying amounts and fair value of financial instruments, other than the carrying amounts which are reasonable approximation of fair values, are as follows: The Group Carrying amount RM Fair value RM 2020 Financial assets Long-term other receivables 1,035,377 960,886 Loan receivables 29,446,198 27,343,516 Financial liabilities Hire purchase liabilities 1,147,984 1,175,807