Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 256 For the year ended 31 March 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 47. FINANCIAL INSTRUMENTS (continued) c. Fair value measurements of financial instruments The fair values of the Group’s financial assets and financial liabilities excluding certain financial instruments are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. Certain financial instruments of the Group are measured at fair values at the end of each reporting period. The following table gives information about how the fair values of these financial instruments are determined (in particular, the valuation technique(s) and inputs used), as well as the level of the fair value hierarchy into which the fair value measurements are categorised (levels 1 to 3) based on the degree to which the inputs to the fair value measurements is observable. Financial assets (liabilities) included in the consolidated statement of financial position Fair value as at Fair value hierarchy Valuation technique and key inputs 31.3.2019 31.3.2018 HK$’000 HK$’000 1a) Listed equity securities classified as financial assets at FVTPL 79,874 62,218 Level 1 Quoted bid prices in an active market 1b) Listed equity securities classified as equity instrument at FVTOCI 1,065,011 – Level 1 Quoted bid prices in an active market 1c) Unlisted equity securities classified as financial assets at FVTPL (2018: available- for-sale investments) 14,483 12,876 Level 2 Discounted cash flows Future cash flows are estimated based on weighted average cost of capital, growth rate of the investee companies and earnings 1d) Unlisted equity securities classified as equity instruments at FVTOCI 2,133 – Level 3 Discounted cash flows Future cash flows are estimated based on weighted average cost of capital, growth rate of the investee companies and earnings 2a) Listed debt securities classified as financial assets at FVTPL 2,076,376 2,625,529 Level 1 Quoted bid prices in an active market 2b) Unlisted debt securities classified as financial assets at FVTPL 50,581 42,880 Level 2 Discounted cash flows Future cash flows are estimated based on applying the interest yield curves of different types of bonds as the key parameter