notes to the financial statements - Singapore Technologies ...

SINGAPORE TECHNOLOGIES ENGINEERING LTD Annual Report 2011217NOTES TO THE FINANCIAL STATEMENTS31 December 2011(Currency - Singapore dollars unless otherwise stated)48. Fair value of financial instruments (continued)NoteQuoted prices inactive marketsfor identicalinstruments(Level 1)Significantotherobservableinputs(Level 2)Significantunobservableinputs(Level 3)Total$’000 $’000 $’000 $’0002010Financial AssetsAvailable-for-sale- Equity investments (quoted) 15 13,904 – – 13,904- Venture capital funds and limited partnership – – 1 1- Bonds (unquoted) 25 – 197,930 – 197,930Fair value through profit or loss- Equity investments (quoted) 25 534 – – 534Derivatives- Forward currency contracts – 19,252 – 19,252- Cross currency swap – 43,369 – 43,36914,438 260,551 1 274,990Financial LiabilitiesDerivatives- Forward currency contracts – 3,116 – 3,116- Interest rate swaps – 14,513 – 14,513- Embedded derivatives – 20,989 – 20,989– 38,618 – 38,618Fair value hierarchyThe 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:(a)(b)(c)Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities;Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) orindirectly (i.e., derived from prices); andLevel 3 - Inputs for the asset or liability that are not based on observable market data (unobservable inputs).The following methods and assumptions are used to estimate the fair value of each class of financial instruments.Bank balances, other liquid funds and short-term receivablesThe carrying amounts approximate fair values due to the relatively short-term maturity of these instruments.