Serba Dinamik Annual Report 2016

2016 Annual Report 157 NOTES TO THE FINANCIAL STATEMENTS (Cont’d) 24. FINANCIAL INSTRUMENTS (CONT’D) 24.4 Fair value information The carrying amounts of cash and cash equivalents, short term receivables and payables and short term borrowings reasonably approximate fair values due to the relatively short term nature of these financial instruments. The fair value of other investments is disclosed in Note 6, which is based on their quoted closing market prices and the net asset value of the unit trust at their reporting date. The table below analyses non-current financial instruments carried at fair value and those not carried at fair value for which fair value is disclosed, together with their fair values and carrying amounts shown in the statement of financial position. Fair value of Fair value of financial instruments financial instruments carried at fair value not carried at fair value Total fair Carrying Level 1 Total Level 3 Total value amount 2016 RM RM RM RM RM RM Group Financial assets Other investments 306,435 306,435 – – 336,931 306,435 Financial liabilities Term loans (Islamic) – – 5,919,127 5,919,127 5,919,127 5,919,127 Term loans – – 3,352,356 3,352,356 3,352,356 3,352,356 Finance lease liabilities – – 6,957,714 6,957,714 6,957,714 6,957,714 – – 16,229,197 16,229,197 16,229,197 16,229,197 Policy on transfer between levels The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer. Level 1 fair value Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical financial assets or liabilities that the entity can access at the measurement date. Level 2 fair value Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the financial assets or liabilities, either directly or indirectly. Non-derivative financial liabilities Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the end of the reporting period.