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158 TRANS FORMATION
NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2011
41 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (cont’d)
(b) Judgements (cont’d)
(ii) Impairment of investment securities
The Group reviews its equity investments classified as available-for-sale investments at each reporting date
to assess whether they are impaired. The Group records impairment charges on available-for-sale equity
investments when there has been a significant or prolonged decline in the fair value below their cost.
The determination of what is “significant” or “prolonged” requires judgement. In making this judgement,
the Group evaluates, among other factors, historical share price movements and the duration and extent
to which the fair value of an investment is less than its cost.
42 FAIR VALUE OF FINANCIAL INSTRUMENTS
A. Fair value of financial instruments that are carried at fair value
The following table shows an analysis of financial instruments carried at fair value by level of fair value hierarchy:
Group
2011
$’000
Quoted prices in
active markets for
identical instruments
Significant other
observable inputs
Significant
unobservable
inputs Total
(Level 1) (Level 2) (Level 3)
Financial assets:
Held for trading investments (note 20)
– Equity instruments (quoted) 13 – – 13
Available-for-sale financial assets (note 20)
– Equity instruments (quoted) 128,258 – – 128,258
– Equity instruments (unquoted) – – 7,242 7,242
At 31 December 2011 128,271 – 7,242 135,513
Financial liabilities:
Derivatives (note 21)
– Foreign currency forward contracts – 171 – 171
– Interest rate swap contracts – 354 – 354
At 31 December 2011 – 525 – 525