Yinson Annual Report 2021

291 ANNUAL REPORT 2021 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2021 40. Fair value measurement (continued) (b) Financial instruments that are not carried at fair value andwhose carrying amounts are reasonable approximation of fair value (continued) The carrying amounts of financial assets and financial liabilities are reasonable approximation of fair values, either due to short-term nature or those floating rate instruments that are re-priced to market interest rates on or near the reporting date. The carrying amounts of non-current receivables are reasonable approximations of fair values. They are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs. The carrying amounts of the current portion of loans and borrowings are reasonable approximation of fair values due to the insignificant impact of discounting. The carrying amounts of non-current loans and borrowings are reasonable approximation of fair values due to those floating rate instruments that are re-priced to market interest rates on or near the reporting date. The fair values of non-current loans and borrowings are 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. Financial guarantees Fair value is determined based on probability weighted discounted cash flow method. The probability has been estimated and assigned for the following key assumptions: - The likelihood of the guaranteed party defaulting within the guarantee period; - The exposure on the portion that is not expected to be recovered due to the guaranteed party’s default; and - The estimated loss exposure if the party guaranteed were to default. The Company has assessed the financial guarantee contracts and concluded that the financial impact of the guarantees is not material as the probability of crystallisation is remote. 41. Financial instruments by category Group Company 2021 2020 2021 2020 RM million RM million RM million RM million Financial assets Financial assets measured at fair value through profit or loss - Other investments (Note 22) 229 202 4 3 Financial assets at amortised costs - Finance lease receivables (Note 33(a)) 2,166 1,549 - - - Trade and other receivables (Note 24) 608 500 496 1,612 - Cash and bank balances (Note 26) 1,821 1,276 9 69 4,595 3,325 505 1,681 Total 4,824 3,527 509 1,684