2016 — Page 136

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

26 FINANCIAL RISK MANAGEMENT AND FAIR VALUES OF FINANCIAL INSTRUMENTS

(Continued)

Fair value measurement (Continued)

(e)

(i)

Financial assets measured at fair value (Continued)

27

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 liabilities carried at other than fair value

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 2016 and 2015.

OPERATING LEASE COMMITMENTS

At 31 December 2016, the total future minimum lease payments under non-cancellable operating leases are payable as follows:

Within 1 year

After 1 year but within 5 years

2016

HK$'000

2015

HK$'000

1,564

5,145

1,830

916

3,394

6,061

The Group leases a number of retail outlets and offices under operating leases. The leases typically run for an initial period of one to three years. Lease payments are usually fixed during the period of the leases. None of the leases includes contingent rentals.

28

CAPITAL COMMITMENTS

Capital commitments outstanding at 31 December 2016 not provided for in the financial statements were as follows:

Contracted for

Authorised but not contracted for

Hong Kong Ferry (Holdings) Company Limited

134 Annual Report 2016

2016

HK$'000

2015

HK$'000

131,693

891

208,307

891

132,584

209,198