Notes to the Financial Statements for the Financial Year Ended 30 September 2024 Sustaining Lives, Empowering Communities Governance That Inspires Confidence Financial Insights Through Numbers Empowering Ownership PG. 301 44. FAIR VALUE (CONT’D) In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; • Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and • Level 3 inputs are unobservable inputs for the asset or liability. (a) Fair value measurement of financial instruments The methods and assumptions used to estimate the fair value of the following classes of financial assets and liabilities are as follows: (i) Cash and cash equivalents, trade and other receivables and payables The carrying amounts approximate their fair values due to the relatively short-term maturities of these financial assets and financial liabilities. (ii) Long-term trade receivables and payables, loan receivables and finance lease receivables The fair values of long-term trade receivables and payables, loan receivables are estimated using expected future cash flows of contractual instalment payments discounted at current prevailing rates offered for similar types of credit or lending arrangements. (iii) Other investment The fair value of other investment in quoted shares is estimated based on the market value as at the reporting date.
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