GHL System Berhad Annual Report 2019

G H L S Y S T E M S B E R H A D 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) 144 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 21. OTHER INVESTMENTS Group Company 2019 2018 2019 2018 RM RM RM RM Financial assets at fair value through profit or loss Equity securities: - Unquoted unit trust in Malaysia 53,167,158 42,732,647 42,164,039 42,732,647 - Unquoted short term money market fund 103,416 100,791 - - 53,270,574 42,833,438 42,164,039 42,732,647 (a) Equity securities which are not held for trading for which the Company has irrevocably elected at initial recognition to recognise at fair value through profit or loss. This is strategic investments for which the Company considers this classification to be appropriate and relevant. (b) Unquoted shares outside Malaysia of the Group and of the Company are categorised as Level 3 in the fair value hierarchy. Fair values of investments in unquoted shares are estimated based on the estimation of value in use. (c) The following table shows a reconciliation of Level 3 fair values of other investments: Group and Company 2019 2018 RM RM Balance as at 1 January - - Addition - 2,117,588 Disposal (2,117,588) - Fair value changes 2,117,588 (2,117,588) Balance as at 31 December - - On 26 August 2019, the Company has entered a termination agreement with MPOS Global to buy back the shares at the consideration equivalent to RM2,117,588. (d) Unquoted unit trust in Malaysia and unquoted short term money market funds held by the Group and the Company comprises money-market fund which is highly liquid, readily convertible to cash and are subject to insignificant risk of changes in value and hence, meet the definition to be classified as cash and cash equivalents. (e) Other investments are denominated in RM. (f) Investment of the company is categorised as Level 2 in the fair value hierarchy. There is no transfer between levels in the hierarchy during the financial year. The fair value of investment is determined by reference to the counter party quotes at the close of the business at the end of the reporting period. (g) Unquoted unit trust in Malaysia and unquoted short term money market fund of the Group and of the Company are categorised as Level 2 in the fair value hierarchy. The fair value of investment is determined by reference to the counter party quotes at the close of the business at the end of the reporting period.