Page 333 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS in retrospect

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for the financial year ended 31 december 2020 (continUed)
the Will to Suceed

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51 FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)
Deposits and placements of banks and other financial institutions
the estimated fair values of deposits and placements of banks and other financial institutions with maturities of less than six achieving a leading repute
months approximate the carrying values. for deposits and placements with maturities of six months or more, the fair values are
estimated based on discounted cash flows using prevailing money market profit rates for deposits and placements with similar
remaining year to maturities. |
Bills and acceptances payable
the estimated fair values of bills and acceptances payable with maturity of less than six months approximate their carrying values.
for bills and acceptances payable with maturities of six months or more, the fair values are estimated based on discounted cash Paving the Way for a Sustainable future
flows using prevailing market rates for borrowings with similar risks profile.
Investment properties
the fair values are based on market values, being the estimated amount for which a property could be exchanged on the date
of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the
parties had each acted knowledgeably.
Fair value hierarchy 327
mfrS 7 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques adopted are
observable or unobservable. observable inputs reflect market data obtained from independent sources and unobservable inputs
reflect the Group’s assumptions. the fair value hierarchy is as follows:
• Level 1 – Quoted price (unadjusted) in active markets for the identical assets or liabilities. This level includes listed equity
securities and debt instruments. adhering to the best Governance Practices
• 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). this level includes profit rates swap and structured debt. the sources of
input parameters include bnm indicative yields.
there has been no transfer between level 1 and 2 fair values during the financial year (2019: no transfer in either direction). |
Laying the Foundation for Financial Growth
• Level 3 – Inputs for asset or liability that are not based on observable market data (unobservable inputs). This level includes
equity instruments and debt instruments with significant unobservable components.

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additional information & disclosure Summary

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24 th aGm information