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Our Performance Sustainability Statement Governance Our Numbers Other Information

47. FAIr vALuE MEASurEMENTS
(a) Financial and non-financial instruments measured at fair value

Determination of fair value and the fair value hierarchy
Level 1 - Quoted (unadjusted) market prices in active markets for identical instruments;
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement either
directly (i.e. prices) or indirectly (i.e. derived from prices), observable; and
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
Where such quoted and observable market prices are not available, fair values are determined using appropriate valuation
techniques, which include the use of mathematical models, such as discounted cash flow models and option pricing
models, comparison to similar instruments for which market observable prices exist and other valuation techniques.
The objective of valuation techniques is to arrive at a fair value determination that reflects the price of the financial and
non-financial instruments at the reporting date, that would have been determined by market participants acting at arm’s
length. Valuation techniques used incorporate assumptions regarding discount rates, profit rate yield curves, estimates
of future cash flows and other factors. Changes in these assumptions could materially affect the fair values derived.
The Group and the Bank generally uses widely recognised valuation techniques with market observable inputs for the
determination of fair value, which require minimal Management’s judgement and estimation, due to the low complexity
of the financial instruments held.

The following table shows the financial and non-financial instruments which are measured at fair value at the reporting
date analysed by the various level within the fair value hierarchy:

valuation technique using;
quoted Observable unobservable
Group Market Price Inputs Inputs
Level 1 Level 2 Level 3 Total
31 December 2020 rM’000 rM’000 rM’000 rM’000

Non-financial assets
Investment properties - - 55,889 55,889

Financial assets
Financial investments designated at
fair value through profit or loss - 10,492 302,845 313,337
Financial investments at FVOCI 104,410 3,689,924 4,631 3,798,965
Derivative financial assets - 47,820 - 47,820
Total financial assets measured at fair value 104,410 3,748,236 307,476 4,160,122

Financial liabilities
Derivative financial liabilities - 167,334 - 167,334
Total financial liabilities measured
at fair value - 167,334 - 167,334