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 (cont’d) Financial instruments measured at Level 2 fair value Financial derivatives The fair values of forward exchange contracts, cross-currency swaps and interest rate swaps are based on banks’ quotes. Similar contracts are traded in an active market and the quotes reflect the actual transactions in similar instruments. Financial instruments not measured at fair value Interest-bearing borrowings The fair value of borrowings which reprice at the intervals of six months or less determined for disclosure purposes are calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. Transfers between levels in the fair value hierarchy The Group and Company did not reclassify any investments between various levels in the fair value hierarchy during the year. ANNUAL REPORT 2024 FINANCIALS 205
RkJQdWJsaXNoZXIy ODIwNTc=