Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 258 For the year ended 31 March 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 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 7) Cross currency swap contracts classified as derivative financial instruments designated as hedging instruments Assets – 4,366 Liabilities – (22,170) Level 2 Discounted cash flow Future cash flows are estimated based on forward exchange and interest rates (from observable forward exchange and interest rates at the end of the reporting period) and contracted forward exchange and interest rates, discounted at a rate that reflects the credit risk of various counterparties 8) Cross currency swap contracts classified as derivative financial instruments Assets – 99 Liabilities – (11,604) Level 2 Discounted cash flow Future cash flows are estimated based on forward exchange and interest rates (from observable forward exchange and interest rates at the end of the reporting period) and contracted forward exchange and interest rates, discounted at a rate that reflects the credit risk of various counterparties 9) Assets/(Liabilities) arising from profit guarantee arrangement Assets – 2,547 Liabilities – (5,876) Level 3 Income approach Discounting future debt free cash flows available for distribution to the owners to their present worth at market-derived rates of return appropriate for the risks and hazards of investing in similar business. There were no transfers between Levels 1, 2 and 3 during the years ended 31 March 2019 and 31 March 2018. 47. FINANCIAL INSTRUMENTS (continued) c. Fair value measurements of financial instruments (continued)