notes to the financial statements - Food Empire Holdings Limited

Food Empire Holdings Limited Annual Report 2012
NOTES TO THE FINANCIAL STATEMENTS (cont’d)
For the year ended 31 December 2012
36. Fair value of financial instruments
Fair value is defined as the amount at which the instrument could be exchanged in a current transaction between knowledgeable
willing parties in an arm’s length transaction, other than in a forced or liquidation sale.
(a)
Fair value of financial instruments that are carried at fair value
The Group classifies fair value measurement using a fair value hierarchy that reflects the significance of the inputs used in
making the measurements. The fair value hierarchy have the following levels:
(i) Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
(ii) Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e as prices) or indirectly (i.e derived from prices) (Level 2); and
(iii) Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
There have been no transfers between Level 1 and Level 2 fair value measurements during the financial years ended 2012
and 2011.
The following table shows an analysis of financial instruments carried at fair value by level of fair value hierarchy:
Quoted prices
in active
markets for
identical
instruments
Significant
other
observable
inputs
Significant
unobservable
inputs
Total
(Level 1) (Level 2) (Level 3)
2012 US$’000 US$’000 US$’000 US$’000
Financial assets:
Derivatives (Note 25) – – 178 178
131