AL-SALAM REIT ANNUAL REPORT 2020

154 AL-SALĀM REIT NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CONT’D) 21. FAIR VALUES OF FINANCIAL INSTRUMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. The carrying amount of the various financial assets and financial liabilities reflected in the statements of financial position approximate their fair values other than as disclosed below: Carrying Fair amount value RM RM Group At 31 December 2020 Financial liability at amortised cost Islamic financing - non-current 581,855,901 529,474,285 Islamic financing - current 52,000,000 52,000,000 At 31 December 2019 Financial liability at amortised cost Islamic financing - non-current 86,000,816 70,303,432 Islamic financing - current 511,531,837 511,531,837 Fund At 31 December 2020 Financial liability at amortised cost Islamic financing - non-current 117,108,795 104,596,005 Amount due to a subsidiary 511,526,831 424,878,280 628,635,626 529,474,285 At 31 December 2019 Financial liability at amortised cost Islamic financing - non-current 86,000,816 70,303,432 Islamic financing - current 349,486,991 349,486,991 Amount due to a subsidiary 160,303,801 160,303,801 595,791,608 580,094,224 The fair value of the non-current Islamic financing was estimated using discounted cash flow analysis based on market equivalent profit rate of 3.77% (2019: 5.46%) per annum for similar type of instruments of similar risk and cash flow profiles. The disclosure of the fair value of the non-current Islamic financing is considered a Level 2 fair value hierarchy disclosure.