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THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2011
NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2011
42 FAIR VALUE OF FINANCIAL INSTRUMENTS (cont’d)
A. Fair value of financial instruments that are carried at fair value (cont’d)
Group
2010
$’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) 17 – – 17
Available-for-sale financial assets (note 20)
– Equity instruments (quoted) 199,292 – – 199,292
– Equity instruments (unquoted) – – 14,387 14,387
Derivatives (note 21)
– Foreign currency forward contracts – 487 – 487
At 31 December 2010 199,309 487 14,387 214,183
Financial liabilities:
Derivatives (note 21)
– Interest rate swap contracts – 576 – 576
At 31 December 2010 – 576 – 576
Fair value hierarchy
The Group classified fair value measurement using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. The fair value hierarchy has the following levels:
Level 1– Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e., as prices) or indirectly (i.e., derived from prices), and
Level 3 – Inputs for the asset or liability that are not based on observable market data (unobservable inputs)
There have been no transfers between Level 1 and Level 2 fair value measurements during the financial years
ended 2011 and 2010.