Sasbadi Annual Report 2020

SASBADI HOLDINGS BERHAD 136 FINANCIAL STATEMENTS (continued) 26. Financial instruments (continued) 26.7 Fair value information (continued) Policy on transfer between levels The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer. Level 1 fair value Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical financial assets or liabilities that the entity can access at the measurement date. Level 2 fair value Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the financial assets or liabilities, either directly or indirectly. Transfers between Level 1 and Level 2 fair values There has been no transfer between Level 1 and 2 fair values during the financial year (2019: no transfer in either directions). Level 3 fair value Level 3 fair value is estimated using unobservable inputs for the financial assets and liabilities. The following table shows the valuation technique used in the determination of fair values within Level 3. Financial instruments not carried at fair value Type Description of valuation technique and inputs used Hire purchase, term loans, finance lease liabilities Discounted cash flows using a rate based on the current market rate of borrowing of the Company at the reporting date.