notes to the financial statements - Singapore Technologies ...

216 SIMPLY SMARTERNOTES TO THE FINANCIAL STATEMENTS31 December 2011(Currency - Singapore dollars unless otherwise stated)47. Financial risk management objectives and policies (continued)Credit risk (continued)Group2011 2010$’000 $’000Aerospace 260,591 263,923Electronics 301,881 275,750Land Systems 257,305 201,179Marine 113,046 88,878Others 20,279 22,164953,102 851,89448. Fair value of financial instrumentsFair value is defined as the amount at which the instrument could be exchanged in a current transaction between knowledgeable willing parties in anarm’s length transaction, other than in a forced or liquidation sale. Fair values are obtained from quoted market prices, discounted cash flow models andoption pricing models as appropriate.The following table shows an analysis of financial instruments carried at fair value by level of fair value hierarchy.NoteQuoted prices inactive marketsfor identicalinstruments(Level 1)Significantotherobservableinputs(Level 2)Significantunobservableinputs(Level 3)Total$’000 $’000 $’000 $’000The Group2011Financial AssetsAvailable-for-sale- Equity investments (quoted) 15 9,342 – – 9,342- Venture capital funds and limited partnership – – 4 4- Bonds (unquoted) 25 – 402,590 – 402,590Fair value through profit or loss- Equity investments (quoted) 25 209 – – 209Derivatives- Forward currency contracts – 5,012 – 5,012- Cross currency swap – 11,793 – 11,7939,551 419,395 4 428,950Financial LiabilitiesDerivatives- Forward currency contracts – 13,066 – 13,066- Interest rate swaps – 12,793 – 12,793- Embedded derivatives – 16,847 – 16,847– 42,706 – 42,706