130
ANNUAL REPORT 2015/2016
NOTES
TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2016
(In Singapore dollars)
33. FINANCIAL INSTRUMENTS (CONT’D)
Fair values of assets and liabilities
The fair value of a financial instrument is the amount at which the instrument could be exchanged or settled
between knowledgeable and willing parties in an arm’s length transaction, other than in a forced or liquidation sale.
(a)
Financial instruments carried at fair value
Fair value hierarchy
The Group classifies 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:
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can access at the measurement date,
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There have been no transfers between Level 1 and Level 2 fair value measurements during the financial
years ended 31 March 2016 and 2015.
Determination of fair value
Derivatives are measured using level 2 fair value measurement. The fair value was determined by reference
to the marked-to-market value provided by a bank.
(b)
Financial instruments that are not carried at fair value and whose carrying amount approximates fair
value
Management has determined that the carrying amount of cash and cash equivalents (Note 18), trade and
other receivables (Notes 15 and 17), trade and other payables (Note 19), finance lease payable (Note 20)
and bank borrowings (Note 21) based on their notional amounts, reasonably approximate their fair values
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.
(c)
Financial instruments that are not carried at fair value and whose carrying amounts are not
reasonable approximation of fair value
The fair value of non-current amounts due from/(to) subsidiaries (Notes 15 and 19) are not determinable as
the timing of the future cash flows arising from the repayment cannot be estimated reliably.