FORGING AHEAD - Tradewinds Plantation Berhad

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FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2010
36. FINANCIAL INSTRUMENTS (continued)
(d) Fair value hierarchy
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at
fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets
or liabilities.
Level 2 fair value measurements are those derived from 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 3 fair value measurements are those derived from inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
As at 31 December 2010, the Group held the following financial instruments carried at fair value in the consolidated
statement of financial position:
Assets measured at fair value
TRADEWINDS PLANTATION BERHAD
Annual Report 2010
31 December
2010 Level 1 Level 2 Level 3
RM’000 RM’000 RM’000 RM’000
Available-for-sale financial assets
- Quoted shares 1,032 1,032 - -
- Unquoted shares 868 - - 868
During the reporting period ended 31 December 2010, there were no transfers between Level 1 and Level 3 fair value
measurement.
37. FINANCIAL RISk MANAGEMENT OBJECTIVES AND POLICIES
The Group’s financial risk management objective is to optimise value creation for shareholders whilst minimising the potential
adverse impact arising from fluctuations in interest rate risk, credit risk, liquidity and cash flow risk, and market price risk.
The exposure to these risks arises in the normal course of the Group’s business. The Group’s overall business strategies,
its tolerance of risk and its general risk management philosophy are determined by the management in accordance with
prevailing economic and operating conditions. The Group is exposed mainly to interest rate risk, credit risk, liquidity and
cash flow risk, and market price risk. Information on the management of the related exposures are detailed below.