BIMB Integrated Annual Report 2019

50 FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) The following table presents the changes in Level 3 instruments for the financial year ended 31 December 2019 for the Group: Group RM’000 Financial assets at FVOCI At 1 January 2018, as previously stated 251,051 Adjustment on adoption of MFRS 9 (net of tax) 22,260 Adjusted balances at 1 January 2018 273,311 Purchases 50,000 Gains recognised in profit or loss – Investment income - realised 14,032 Gains recognised in other comprehensive income – Net change in fair value (unrealised) 4,354 At 31 December 2018/1 January 2019 341,697 Purchases 205,844 Disposal (15,842) Gains recognised in profit or loss – Investment income - realised 20,020 Gains recognised in other comprehensive income – Net change in fair value (unrealised) 17,114 At 31 December 2019 568,833 The following table shows the valuation techniques used in the determination of fair values within Level 3, as well as the key unobservable inputs used in the valuation models. (a) Financial instruments carried at fair value Financial assets measured at FVOCI Type Valuation technique Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement Unquoted shares Net tangible assets Net tangible assets Higher net tangible assets results in higher fair value Institutional trust account Discounted cash flows using market profit rate for a similar instrument at the measurement date 4.58% (2018: 4.58%) The estimated fair value would increase (decrease) if the discount rate were (lower) higher. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 314 Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance