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124

NOTES TO THE FINANCIAL STATEMENTS

F I N A N C I A L S TAT E M E N T S

2.

SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.3 Summary of Significant Accounting Policies (Cont’d.)

(w) Fair Value Measurement (Cont’d.)

The fair value of an asset or a liability is measured using the assumptions that market participants would use when

pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate

economic benefits by using the asset in its highest and best use or by selling it to another market participant that

would use the asset in its highest and best use.

The Group and the Company use valuation techniques that are appropriate in the circumstances and for which

sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising

the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised

within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair

value measurement as a whole:

-

Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities.

-

Level 2 — Valuation technique for which the lowest level input that is significant to the fair value measurement

is directly or indirectly observable.

-

Level 3 — Valuation technique that use inputs that have a significant effect on the recorded fair value that are

not based on observable market data.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group and

the Company determine whether transfers have occurred between Levels in the hierarchy by re-assessing

categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the

end of each reporting period.

2.4 Significant Accounting Estimates and Judgements

Estimates, assumptions concerning the future and judgements are made in the preparation of the financial statements.

They affect the application of the Group’s accounting policies, reported amounts of assets, liabilities, income and

expenses, and disclosures made. They are assessed on an on-going basis and are based on experience and other

relevant factors, including expectations of future events that are believed to be reasonable under the circumstances.

The significant key assumptions concerning the future and other key sources of estimation uncertainty at the reporting

date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within

the next financial year are discussed below: