Frontken Berhad Annual Report 2019

131 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2019 30. FINANCIAL INSTRUMENTS (CONT’D) (e) Fair Value Information (Cont’d) (i) Fair Value of Financial Instruments Carried at Fair Value � The fair value of short-term investments is determined by reference to statements provided by the respective financial institutions, with which the investments were entered into. � There were no transfers between level 1 and level 2 during the financial year. (ii) Fair Value of Financial Instruments Not Carried at Fair Value The fair values, which are for disclosure purpose, have been determined using the following basis:- The fair value of hire purchase payables and term loans determined by discounting the relevant future contractual cash flows using current market interest rates for similar instruments at the end of the reporting period. The interest rates used to discount the estimated cash flows are as follows:- The Group 2019 2018 % % Hire purchase payables - 2.80 - 4.54 Term loans 3.40 - 3.76 1.40 - 3.40 31. COMMITMENTS (i) Operating lease commitments The Group has applied MFRS 16 using the modified retrospective approach. As a result, the following information is disclosures required by MFRS 117 ‘Leases’:- Leases as lessee The Group 2018 RM - Not later than one year 2,031,100 - Between one year and five years 4,116,424 - Later than five years 9,439,879 15,587,403 The Group leases a number of type of right-of-use assets per Note 12 under non-cancellable operating leases. Notes To The Financial Statements (cont’d)