115 / 132
113
EC World Real Estate Investment Trust ANNUAL REPORT 2016
NOTES TO THE
Financial Statements
For the Financial Year ended 31 December 2016
23. Financial risk management (continued)
(e) Financial instruments by category and fair value measurements (continued)
There were no transfers between Levels 1 and 2 during the year.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined by using valuation techniques. The Group uses a variety of methods and makes
assumptions that are based on market conditions existing at each reporting date. Quoted market prices or dealer
quotes for similar instruments are used to estimate fair value for long-term debt for disclosure purposes. The fair
value of interest rate swaps is calculated as the present value of the estimated future cash flows. The fair value
of forward foreign exchange contracts is determined using quoted forward currency rates at the reporting date.
These investments are classified as Level 2 and comprise debt investments and derivative financial instruments.
Carrying amount
Fair value
Fair
value
through
profit or
loss
Loans and
receivables
Other
financial
liabilities
within the
scope of
FRS 39
Total Level 1 Level 2 Level 3 Total
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Group
2016
Financial assets
Cash and cash
equivalents
–
103,665
– 103,665
– – – –
Trade and other
receivables*
–
37,249
–
37,249
– – – –
Derivative financal
instruments
417
–
–
417
– 417
– 417
Financial assets, at fair
value through
profit or loss
7,700
–
–
7,700
– 7,700
– 7,700
8,117
140,914
– 149,031
Financial liabilities
Trade and other
payables^
–
–
75,242 75,242
– – – –
Borrowings
–
– 398,830 398,830
– – – –
Derivative financial
instruments
387
–
–
387
– 387
– 387
387
– 474,072 474,459
2015
Financial assets
Cash and cash
equivalents
–
16,032
–
16,032
– – – –
Trade and other
receivables*
–
167,866
– 167,866
– – – –
–
183,898
– 183,898
Financial liabilities
Trade and other
payables^
–
– 403,595 403,595
–
–
–
–
Borrowings
–
– 267,140 267,140
–
–
–
–
–
– 670,735 670,735