ANNUAL REPORT 2015 |
181
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
36. FINANCIAL INSTRUMENTS (cont’d)
(b) Financial instruments (cont’d)
Company
Loans and
receivables
Total
2014
RM’000
RM’000
Financial assets
Other receivables
60,216
60,216
Cash and bank balances
11,772
11,772
71,988
71,988
Other
financial
liabilities
Total
RM’000
RM’000
Financial liabilities
Borrowings
14,890
14,890
Other payables
13,306
13,306
28,196
28,196
(c) Methods and assumptions used to estimate fair value
The fair values of financial assets and financial liabilities are determined as follows:
i.
Financial instruments that are not carried at fair value and whose carrying amounts are a reasonable approximation
of fair value.
The carrying amounts of financial assets and liabilities, such as trade and other receivables, trade and other payables
and borrowings, are reasonable approximation of fair value, either due to their short-term nature or that they are
floating rate instruments that are re-priced to market interest rates on or near the end of the reporting period.
The carrying amounts of the current position of loans and borrowings are reasonable approximations of fair values
due to insignificant impact of discounting.
ii.
Hire purchase and lease creditors
The fair values of these financial instruments are estimated by discounting expected future cash flows at market
incremental lending rate for similar types of lending, borrowing or leasing arrangements at the end of each reporting
period.
iii. Other investments
The fair values for clubmemberships are estimated based on references to current available counters party quotation
of the same investment.
iv. Non-current other payables
The fair value of non-current other payables is estimated by discounting expected future cash flows. The discount
rate has been estimated based on the weighted average cost of capital of the Group.
