NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2024 41 FINANCIAL INSTRUMENTS (CONT’D) (v) Accounting classifications and fair values (cont’d) Measurement of fair values Valuation techniques and significant unobservable inputs The following table shows the valuation techniques used in measuring Level 3 fair values, as well as the significant unobservable inputs used. Financial instruments measured at Level 3 fair value Type Valuation techniques Significant unobservable inputs Inter-relationship between key unobservable inputs and fair value measurement Unquoted debt investments – mandatorily at FVTPL Discounted cash flows: The valuation model considers the present value of the expected future payments, discounted using a risk-adjusted discount rate. 2024: Not applicable 2023: Not applicable The estimated fair value would increase/(decrease) if the discount rate was lower/(higher). Unquoted equity investments – at FVOCI The fair value is calculated using the net asset value (NAV) of the investee entity adjusted for the fair value of the underlying properties, where applicable. A discount is applied to take into consideration the non-marketable nature of the investment, where applicable. NAV Discount rate: 2024: 20% 2023: 20% The estimated fair value would increase/(decrease) if the NAV was higher/ (lower). The estimated fair value would increase/(decrease) if the discount rate was lower/(higher). Unquoted equity investments – mandatorily at FVTPL The fair value is calculated using the NAV of the investee entity adjusted for the fair value of the underlying properties, where applicable. NAV The estimated fair value would increase/(decrease) if the NAV was higher/ (lower). The fair value is calculated using the market approach of weighted price-to-sales multiples of comparable companies. A discount is applied to take into consideration the nonmarketable nature of the investment, where applicable. Price-to-sales multiple: 2024: 9.0 times 2023: 8.1 times Discount rate: 2024: 20% 2023: 20% The estimated fair value would increase/ (decrease) if the price-tosales multiple was higher/ (lower). The estimated fair value would increase/(decrease) if the discount rate was lower/(higher). FINANCIALS CITY DEVELOPMENTS LIMITED 204
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