234 AL-SALĀM REIT NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 ANNUAL REPORT 2023 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 Fair amount value RM RM Group At 31 December 2023 Financial liability at amortised cost Islamic financing - non-current 521,681,074 453,864,788 Islamic financing - current 117,934,325 116,685,992 639,615,399 570,550,780 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 Fund At 31 December 2023 Financial liability at amortised cost Islamic financing - non-current 69,521,341 57,494,125 Islamic financing - current 117,934,325 116,685,992 Amount due to a subsidiary - non-current 448,837,893 396,370,663 636,293,559 570,550,780 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 The fair value of the non-current Islamic financing was estimated using discounted cash flow analysis based on market equivalent profit rate of 5.54% (2022: 3.53%) 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.
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