Page 192 - CJ 2019 INTEGRATED REPORT

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(d)
NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019
(CONTINUED)
FINANCIAL RISK MANAGEMENT (CONTINUED)
Fair value estimation
The The fair fair value value of financial financial assets assets at at at at fair fair value value through OCI
that are traded fin in in fin active markets is is based on quoted quoted market market market prices at at at at the the the reporting date The The quoted quoted market market market price price price used for financial financial assets assets held by the the the Group and Company is is the the the current bid price price The The fair value of of financial instruments that are are not traded fin in in in in an an an an an active market (for example unquoted shares) is determined using valuation techniques The The Group and and Company use a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a variety of of methods and and make assumptions that are are are based on on on on on on market market conditions existing at at at at each reporting date Quoted market market prices or or or or dealer quotes for for similar instruments instruments are are are used used for for long term term debt Other techniques such as as as discounted cash flows are are are used used to determine the the the fair value of the remaining instruments instruments The The carrying carrying amounts of of loans and receivables less impairment provision are assumed to approximate approximate their their fair fair values values values The The carrying carrying values values of of financial liabilities also approximate their fair values values • Fair values hierarchy In accordance with the the the the the amendment to IFRS 13 the the the the the Group and Company classify fair fair fair value value value measurements measurements using a a a a a a a a a a a a a a a a a a a a fair fair fair value value value hierarchy hierarchy that reflects the the the the the the significance of the the the the the the inputs used in in in in in making the the the the the the measurements measurements The fair fair fair value value value hierarchy hierarchy has the following levels:
• Quoted prices (unadjusted) in active markets for identical assets or or liabilities (level 1) • Inputs other than quoted prices prices prices included within level level 1 that that that are observable for the the the asset or or or liability either directly directly (that (that is is as prices) prices) or indirectly (that is is derived from prices) prices) (level 2) • Inputs for the asset or or liability that that are not based on observable observable market data (that is unobservable inputs) (level 3) The level level in in in in in in the the the the the fair fair fair value value value hierarchy within which the the the the the fair fair fair value value value measurement measurement is is is is is is categorised in in in in in in its its entirety entirety is is is is is is determined on the the the the the the the basis of of the the the the the the the lowest level level input input that is is is is is is is significant to the the the the the the the fair fair fair fair fair value value value value value measurement measurement measurement measurement in in in in in in in in in its its its entirety entirety entirety For this purpose the the the the the significance of of an an an an input input input input is is is is is assessed against the the the the the fair fair fair value value value measurement measurement measurement measurement in in in in in in in its its entirety entirety If a a a a a a a a a a a a a a a a a a a a a a a a a a a fair fair fair value value value measurement measurement measurement measurement uses observable observable inputs inputs that that require require significant adjustment based on unobservable inputs inputs that that measurement measurement measurement measurement measurement is is a a a a a a a a a a a a a a a a a a a a a a a a a a a a a level 3 measurement measurement measurement Assessing the the the significance of a a a a a a a a a a a a a a a a a a a a particular input input input to to to the the the fair value measurement measurement measurement in in in in in in its entirety requires judgement considering factors specific to to the the asset or or liability The determination of what constitutes ‘observable’ requires significant judgement by the Group and Company Management considers observable observable data data to be that that that market data data that that that is is readily available regularly distributed or updated reliable and and verifiable not proprietary and and provided by independent sources that that that are actively involved in in in the relevant market The following table presents the Group’s and and Company’s assets measured at at fair values at at 31 December 2019
and and 2018:
Group – 2019
Assets
Financial assets at fair value through profit or loss
- Trading securities
Land and and buildings
Financial assets at fair value through OCI
- Equity securities
- Debt securities
Total assets Level 1 Rs’000
290 961
- 630 462 - 921 423
Level 2
Rs’000
- 2
189 346
- 73 428 2
2
2
262 774
Level 3 Rs’000
111 401
- 12 778
- 124 179
Total Rs’000
402 362 2
189 346
643 240 73 428 3 3 3 308 376
CURRIMJEE JEEWANJEE AND COMPANY LIMITED