26. FINANCIAL RISK MANAGEMENT (continued) Financial risk factors (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 and cross currency interest rate swaps are calculated as the present value of the estimated future cash flows based on observable yield curves. These investments are classified as Level 2 which comprise derivative financial instruments. In frequent circumstances, where a valuation technique for these instruments is based on significant unobservable inputs, such instruments are classified as Level 3. Carrying amount Fair value hierarchy Financial asset at fair value through profit or loss Financial asset at amortised cost Financial Liabilities at amortised cost 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 2024 Financial assets Cash and bank balances – 4,513 – 4,513 – – – – Trade and other receivables* – 168,323 – 168,323 – – – – – 172,836 – 172,836 Financial liabilities Trade and other payables^ – – 173,884 173,884 – – – – Borrowings – – 480,382 480,382 – – – – Derivative financial instruments – – – – – – – – – – 654,266 654,266 Group 2023 Financial assets Cash and bank balances – 100,964 – 100,964 – – – – Trade and other receivables* – 97,227 – 97,227 – – – – – 198,191 – 198,191 Financial liabilities Trade and other payables^ – – 130,759 130,759 – – – – Borrowings – – 559,079 559,079 – – – – Derivative financial instruments 1,879 – – 1,879 – 1,879 – 1,879 1,879 – 689,838 691,717 EC WORLD REIT 120 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
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