Hong Kong Ferry (Holdings) Company Limited Annual Report 2013
Notes to the Accounts (Continued)
24 FINANCIAL RISK MANAGEMENT AND FAIR VALUES OF FINANCIAL
INSTRUMENTS (Continued)
(e)
Fair value measurement
(i)
Financial assets measured at fair value
Fair value hierarchy
The following table presents the fair value of the Group's financial instruments measured at the balance
sheet date on a recurring basis, categorised into the three-level fair value hierarchy as defined in HKFRS
13, Fair value measurement. The level into which a fair value measurement is classified is determined with
reference to the observability and significance of the inputs used in the valuation technique as follows:
Level 1 valuations: Fair value measured using only Level 1 inputs i.e. unadjusted quoted prices in
active markets for identical assets or liabilities at the measurement date
Level 2 valuations: Fair value measured using Level 2 inputs i.e. observable inputs which fail to
meet Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for
which market data are not available.
Level 3 valuations: Fair value measured using significant unobservable inputs
The Group has a team headed by the Chief Financial Officer performing valuations for the financial instruments and reports directly to the audit committee. A valuation report with analysis of changes in fair value measurement is prepared by the team at each interim and annual reporting date, and is reviewed and approved by the management. Discussion of the valuation process and results with the audit committee is held twice a year, to coincide with the reporting dates.
The Group
Recurring fair value measurement
Financial assets:
Available-for-sale securities:
- Listed
Fair value measurements as at
31 December 2013 categorised into
Fair value at
31 December
2013
HK$'000
Level 1
HK$'000
Level 2
HK$'000
Level 3
HK$'000
400,743
400,743
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