86 MSC BERHAD Notes to the Financial Statements (cont’d) 8. Investment in an Associate (cont’d) (c) Material accounting policy information Investments in associates are measured in the Company’s statement of financial position at cost less any impairment losses. 9. Other Investments Group Company 2024 2023 2024 2023 RM RM RM RM Non-current Financial assets measured at fair value through other comprehensive income (“FVTOCI”) Quoted shares, in Malaysia 12,322,500 10,765,275 12,322,500 10,765,275 Unquoted shares, outside Malaysia 14,158,500 - - - 26,481,000 10,765,275 12,322,500 10,765,275 The Group has designated the quoted and unquoted equity investments measured at FVTOCI because the Group intends to hold for long-term strategic purposes. The fair value of the listed equity securities was determined by reference to the quoted price in an active market. In 2024, the Group sold its equity interest in Heitech Padu Berhad as this investment no longer coincides with the Group’s investment strategy. The fair value on the date of sale is RM10,419,870 and the accumulated gain recognised in other comprehensive income of RM4,405,523 was transferred to retained earnings. Details of Level 3 fair value measurements are as follows: Unquoted shares outside Malaysia Valuation method and key inputs Significant unobservable inputs Relationship of unobservable inputs Discounted future cash flows. Discount rate of 8.24% (2023: Nil) The higher the discount rate, the lower the fair value. Sales growth rate of 32% (2023: Nil) The higher the sales growth rate, the higher the fair value. Material accounting policy information Investment in equity investment are not held for trading. At initial recognition, the Group has irrevocably elect to present subsequent changes in the fair value of the investments in other comprehensive income. This election is made on an investment-by-investment basis. On derecognition, gains and losses accumulated in other comprehensive income are not reclassified to profit or loss.
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