Annual Report 2012 - IOI Group

NOTES TO THEFINANCIAL STATEMENTS42. FINANCIAL INSTRUMENTS (Continued)42.3 Price fluctuation risk (Continued)42.3.2 Price risk exposure (Continued)Fair value hierarchy (Continued)RM’000Fair value attributed to price changes at period closingHierarchy of the underlying variableCompanyinput used in measuring fair valuationLevel 1 Level 2 Level 3 Total2012Equity basedOther investments 6,477 – – 6,4776,477 – – 6,4772011Commodity basedCPO swap – short 2,640 – – 2,640CPO swap – long (2,640) – – (2,640)Equity basedOther investments 7,087 – – 7,0877,087 – – 7,087There were no transfers between all 3 levels of the fair value hierarchy.Reconciliation of fair value measurements of Level 3 financial instrumentsThe Group carries unquoted equity shares as financial assets at fair value through profit or loss classified in Level 3within the fair value hierarchy.2012 2011RM’000RM’000Financial assets designated at fair value through profit or lossAt beginning of financial year 1,912 653Total gains recognised in profit or loss 4,388 1,259At end of financial year 6,300 1,912The Group believes that its estimates of fair value are appropriate; the use of different methodologies or assumptionscould lead to different measurements of fair values. As the fair value measurements in Level 3 are based on the netassets of the investees, there are no alternative assumptions that would differ from the amount determined.230IOI CORPORATION BERHADAnnual Report 2012