199 ANNUAL REPORT 2022 21. Fair values of financial instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. The carrying amount of the various financial assets and financial liabilities reflected in the statements of financial position approximate their fair values other than as disclosed below: Carrying amount RM Fair value RM Group At 31 December 2022 Financial liability at amortised cost Islamic financing - non-current 187,062,422 170,918,728 Islamic financing - current 450,207,880 436,752,578 637,270,302 607,671,306 At 31 December 2021 Financial liability at amortised cost Islamic financing - non-current 635,656,938 590,541,852 Fund At 31 December 2022 Financial liability at amortised cost Islamic financing - non-current 187,062,422 170,918,728 Amount due to a subsidiary - current 445,968,601 436,752,578 633,031,023 607,671,306 At 31 December 2021 Financial liability at amortised cost Islamic financing - non-current 186,669,178 166,135,378 Amount due to a subsidiary - non-current 444,679,509 424,406,473 631,348,687 590,541,852 The fair value of the non-current Islamic financing was estimated using discounted cash flow analysis based on market equivalent profit rate of 4.53% (2021: 3.68%) per annum for similar type of instruments of similar risk and cash flow profiles. The disclosure of the fair value of the non-current Islamic financing is considered a Level 2 fair value hierarchy disclosure. NOTES TO THE FINANCIAL STATEMENTS 31 December 2022 (cont’d.)
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