Annual Report 2012

Financial Statements (PRC)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2012
54 FINANCIAL INSTRUMENTS (Continued)
Fair values (Continued)
(ii) Fair values of financial instruments carried at other than fair value
The fair values of the Group’s financial instruments (other than long-term debts and unquoted security investments) approximate their carrying
amounts due to the short-term maturity of these instruments. The fair values of long-term debts are estimated by discounting future cash flows
using current market interest rates offered to the Group for debt with substantially the same characteristics and maturities ranging from 4.89%
to 6.55% (2011: 4.95% to 7.05%). The following table presents the carrying amount and fair value of the Group’s long-term debts other than
loans from Sinopec Group Company and fellow subsidiaries at 31 December 2012 and 2011:
132
Annual Report 2012 CHINA PETROLEUM & CHEMICAL CORPORATION
2012 2011
RMB millions RMB millions
Carrying amount 137,408 160,082
Fair value 131,391 146,272
The Group has not developed an internal valuation model necessary to make the estimate of the fair value of loans from Sinopec Group Company
and fellow subsidiaries as it is not considered practicable to estimate their fair value because the cost of obtaining discount and borrowing rates
for comparable borrowings would be excessive based on the Reorganisation of the Group, its existing capital structure and the terms of the
borrowings.
Other unquoted equity investments are individually and in the aggregate not material to the Group’s financial position or results of operations.
There are no listed market prices for such interests in the PRC and, accordingly, a reasonable estimate of fair value could not be made without
incurring excessive costs. The Group intends to hold these unquoted equity investments for long term purpose.
Except for the above items, the financial assets and liabilities of the Group are carried at amounts not materially different from their fair values
at 31 December 2012 and 2011.
55 EXTRAORDINARY GAINS AND LOSSES
Pursuant to “Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public – Extraordinary Gain
and Loss” (2008), the extraordinary gains and losses of the Group are as follows:
2012 2011
RMB millions RMB millions
Extraordinary (gains)/losses for the year:
Net gain on disposal of non-current assets (133) (754)
Donations 231 90
Government grants (2,814) (1,400)
Gain on holding and disposal of various investments (69) (48)
Other non-operating expenses, net 553 385
(2,232) (1,727)
Tax effect 558 432
Total (1,674) (1,295)
Attributable to:
Equity shareholders of the Company (1,574) (1,244)
Minority interests (100) (51)