Fraser & Neave Holdings Bhd Annual Report 2020

216 FRASER & NEAVE HOLDINGS BHD 196101000155 (4205-V) Notes to The Financial Statements (Cont’d.) 30. FINANCIAL INSTRUMENTS (CONTINUED) (G) FAIR VALUE INFORMATION The carrying amounts of cash and cash equivalents, short-term receivables and payables, and short-term loans and borrowings reasonably approximate their fair values due to the relatively short-term nature of these financial instruments. The table below analyses financial instruments carried at fair value and those not carried at fair value for which fair value is disclosed, together with fair values and carrying amounts shown in the statements of financial position. Fair value of financial instruments carried at fair value Fair value of financial instruments not carried at fair value Total fair value RM’000 Carrying amount RM’000 Note Level 1 RM’000 Level 2 RM’000 Level 3 RM’000 Total RM’000 Level 1 RM’000 Level 2 RM’000 Level 3 RM’000 Total RM’000 2020 Group Financial asset Derivative financial assets 14 – 4 – 4 – – – – 4 4 Financial liability Derivative financial liabilities 14 – 367 – 367 – – – – 367 367 2019 Group Financial asset Derivative financial assets 14 – 6 – 6 – – – – 6 6 Financial liabilities Derivative financial liabilities 14 – 136 – 136 – – – – 136 136 Loans and borrowings 17 – – – – – – 123,594 123,594 123,594 123,311 – 136 – 136 – – 123,594 123,594 123,730 123,447 Level 2 fair value Derivatives The fair value of a forward exchange contract is estimated by taking the difference of the future cash flows arising from the derivative financial instrument, each discounted by their respective risk-free rate (based on government bonds) to themeasurement date based on residual maturity of the foreign exchange contract. Transfers between Level 1 and Level 2 fair values There has been no transfer between Level 1 and Level 2 fair values during the financial year (2019: no transfer in either directions).