26

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FINANCIAL RISK MANAGEMENT AND FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued)

(e) Fair value measurement (Continued;

Financial assets Pradedal fo des continued)

Fair value hierarchy (Continued)

Recurring fair value measurements

Financial assets:

- Listed

Available-for-sale securities:

Recurring fair value measurement

Fair value measurements as at 31 December 2017 categorised into

Fair value at 31 December

2017

HK$'000

Level 1

HK$'000

Level 2

HK$'000

Level 3

HK$'000

176,306

Fair value measurements as at

176,306

31 December 2016 categorised into

Fair value at 31 December

2016

HK$'000

Level 1 HK$'000

Level 2 HK$000

Level 3

·HK$'000

Financial assets:

Available-for-sale securities:

- Listed

661,542

661,542

Financial assets designated at fair

value through profit or loss

20,000

20,000

During the year ended 31 December 2017, there were no transfers between Level 1 and Level 2, or transfers into or out of Level 3 (2016: Nil). The Group's policy is to recognise transfers between levels of fair value hierarchy as at the end of the reporting period in which they occur.

Valuation techniques and inputs used in Level 2 fair value measurements

The fair value of financial assets designated at fair value through profit or loss is based on the pricing model taking into account the market closing prices of the underlying equity securities and/or index, volatilities, correlations and interest rates, which are observable market data, at the end of the reporting period.

(ii)

Fair values of financial assets and labile imed

-

The carrying amounts of the Group's financial instruments carried at cost or amortised cost are not materially different from their fair values as at 31 December 2017 and 2016.

145

Hong Kong Ferry (Holdings) Company Limited Annual Report 2017

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