Yinson Annual Report 2021

290 YINSON HOLDINGS BERHAD SECTION 07 : ACCOUNTABILITY NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2021 40. Fair value measurement (continued) (a) Fair value hierarchy (continued) Fair value measurement using Quoted prices in active market Significant observable inputs Significant unobservable inputs Level 1 Level 2 Level 3 Total RM million RM million RM million RM million At 31 January 2020 Non-financial asset: Investment properties - - 18 18 Financial asset: Other investments - 202 - 202 Financial liability: Interest rate swaps - 156 - 156 The Group and the Company classifies fair value measurement using the fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities; Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. There were no transfers between Levels 1 and 2 and between Levels 2 and 3 during the current financial year. The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. TheGroup and the Company uses a variety of methods andmakes assumptions that are based on market conditions existing at each balance sheet date. Quoted market prices or dealer quotes for similar instruments are used to estimate fair value for long-term debt for disclosure purposes. Other techniques, such as estimated discounted cash flows, are used to determine the fair value for the remaining financial instruments. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves. The fair value of investment funds is determined based on independent fund valuations. These investments are classified as Level 2 and comprise other investments and derivative financial instruments. In infrequent circumstances, where a valuation technique for these instruments is based on significant unobservable inputs, such instruments are classified as Level 3. (b) Financial instruments that are not carried at fair value andwhose carrying amounts are reasonable approximation of fair value The following are classes of the Group's and Company's financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value: Note Trade and other receivables 24 Loans and borrowings 32 Trade and other payables 36