35. Fair value of financial instruments
Determination of fair value
The following are classes of financial instruments that are not carried at fair value and whose carrying amounts
are reasonable approximation of fair value:
Note
Trade and other receivables (current)
19
Other receivables (non-current)
- Loans to non-wholly owned Subsidiary
19
Amount due to Immediate Holding Company (current)
27
Loans to/(from) Subsidiaries (current)
19, 27
Amount due from/(to) Associates (current)
19, 27
Loan from joint operation partner (current)
27
Amount due from/(to) related companies (current)
19, 27
Trade and other payables (current)
27
Borrowings (current and non-current)
26
Except for the non-current loan to a Subsidiary, the carrying amounts of these financial assets and liabilities
are reasonable approximation of fair values, either due to their short-term nature or that they are floating rate
instruments that approximate market interest rates at the reporting date.
The non-current loan to a Subsidiary is evaluated by the Group based on parameters such as interest rates,
individual creditworthiness of the Subsidiary and the risk characteristics of the financed project. Based on this
evaluation, allowances are taken into account for expected losses of the loan. As at 31 December 2015, the
carrying amount of the loan, net of allowances, was not materially different from its calculated fair value.
The fair value of borrowings are estimated by discounting expected future cash flows at market incremental
lending rate for similar types of lending or borrowing arrangements at the reporting date.
an n ual repo rt 2015
129
