Page 212 - Exim iar24_Ebook

EXIM BANK MALAYSIA
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NOTES TO THE FINANCIAL STATEMENTS

42. FINANCIAL RISK MANAGEMENT POLICIES (cont’d)
Fair values
(i) Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been
defined as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Valuation method for which all significant inputs are, or are based on, observable market data.
Level 3 - Valuation method for which significant inputs are not based on observable data.

For financial instruments classified as Level 1, the valuations are determined by reference to unadjusted quoted prices
for identical assets or liabilities in active markets where the quoted prices are readily available, and the prices represent
actual and regularly occurring market transactions at arm’s length basis. An active market is one in which transactions
occur with sufficient volume and frequency to provide pricing information on an ongoing basis.
For financial instruments classified as Level 2, their values are based on quoted prices in inactive markets, or whose values
are based on models whereby the inputs to those models are observable either directly or indirectly for substantially the
full term of the asset or liability. These would include certain bonds, corporate debt securities and issued notes.
The following table represents financial assets and liabilities measured at fair value and classified by level with the
following fair value measurement hierarchy:
Carrying Fair value Fair value
value Level 1 Level 2
RM’000 RM’000 RM’000

Group and Bank
2024
Financial assets

Assets measured at fair value
Financial investments at FVOCI
- Unquoted debt securities 651,955 - 651,955
Financial investments at FVTPL
- Quoted shares 5,011 5,011 -
Total financial assets carried at fair value 656,966 5,011 651,955

Financial liabilities
Liabilities measured at fair value
Borrowings (hedged portion) 1,960,741 - 1,960,741
Derivative financial instruments 110,854 - 110,854