Tropicana Corporation Berhad Annual Report 2019

38. FAIR VALUE MEASUREMENT Determination of fair values of financial instruments The fair values of financial instruments measured at amortised cost are derived as follows: Non-current financial instruments - Estimated by discounting expected future cash flows at market incremental lending rate for similar types of lending, borrowing or leasing arrangements at the reporting date; or Current financial instruments - Reasonable approximation of their carrying values as they are either floating rate financial instruments which are repriced to market interest rates, short-term in nature or are repayable on demand. The fair value measurement hierarchies used to measure assets and liabilities carried at fair value in the statements of financial position are as follows: (a) Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities (b) Level 2 Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable (c) Level 3 Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable Level 1 Level 2 Level 3 Total RM’000 RM’000 RM’000 RM’000 Group 31 December 2019 Assets measured at fair value: Other investments (Note 21) – – 312 312 Investment properties – – 1,295,070 1,295,070 Assets classified as held for sale – – 75,700 75,700 31 December 2018 Assets measured at fair value: Other investments (Note 21) – – 312 312 Investment properties – – 493,169 493,169 Assets classified as held for sale – – 59,100 59,100 Description of valuation techniques used and key inputs to valuation on investment properties is as disclosed in Note 17. There were no transfers between Level 1, Level 2 and Level 3 during the financial year. For the financial year ended 31 December 2019 Notes to the Financial Statements Tropicana Corporation Berhad Annual Report 2019 pg 238 About Tropicana Our Strategic Performance Our Leadership