282 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2023 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2023 39. Fair value measurement (continued) (b) Financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value (continued) 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 the 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. 40. Financial instruments by category Group Company 2023 RM million 2022 RM million 2023 RM million 2022 RM million Financial assets Financial assets measured at fair value through profit or loss - Other investments (Note 22) 153 14 51 - Financial assets designated as cash flow hedge - Interest rate swaps (Note 36) 369 - - - Financial assets designated as fair value hedge - Foreign exchange forward contracts (Note 36) 6 - - - Financial assets designated as net investment hedge - Foreign exchange forward contracts (Note 36) 34 - - - Financial assets at amortised costs - Finance lease receivables (Note 33(a)) 2,095 2,171 - - - Trade and other receivables (Note 24) 919 644 456 481 - Cash and bank balances (Note 26) 1,507 2,859 121 335 4,521 5,674 577 816 Total 5,083 5,688 628 816
RkJQdWJsaXNoZXIy NDgzMzc=