FGV Audited Financial Statements 2020

4 FINANCIAL RISK MANAGEMENT (CONTINUED) (c) Fair value estimation (continued) Group (continued) Level 1 RM’000 Level 2 RM’000 Level 3 RM’000 Total RM’000 2019 Liabilities Financial assets at fair value through profit or loss: (i) LLA liability - - 4,316,146 4,316,146 (ii) Derivatives - Foreign currency forward contracts - 11 - 11 - Islamic profit rate swap - 5,166 - 5,166 - Commodities futures contracts 29,255 - - 29,255 Total liabilities 29,255 5,177 4,316,146 4,350,578 The Company has no financial assets and liabilities that are measured at fair value at 31 December 2020 and 31 December 2019. There were no transfers between Levels 1 and 2 during the financial year. (i) Financial instruments in Level 1 The fair value of financial instruments traded in active markets is based on quoted market prices at the statement of financial position date. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1. Instruments included in Level 1 comprise primarily equity investments listed in Bursa Malaysia Securities Berhad or foreign stock exchanges classified as trading securities or financial assets at fair value through other comprehensive income and commodity derivatives quoted on Malaysia Derivatives Exchange (“MDEX”) for palm oil and other foreign commodity exchanges. ii) Financial instruments in Level 2 The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. Instruments included in Level 2 comprise foreign currency forward contracts and Islamic profit rate swap. If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. 67 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 Audited Financial Statements 2020