Annual Report 2020

170 Notes to the Financial Statements Annual Report 2020 Miramar Hotel and Investment Company, Limited 23 Financial risk management and fair values (Continued) (e) Fair value measurement (continued) (i) Financial assets measured at fair value (continued) Fair value at 31 December Fair value measurements at 31 December 2019 2019 Level 1 Level 2 Level 3 HK$’000 HK$’000 HK$’000 HK$’000 Recurring fair value measurements Assets: Equity securities designated at FVOCI: – Listed equity securities in Hong Kong 75,343 75,343 – – – Listed equity securities outside Hong Kong 19,593 19,593 – – Financial assets measured at FVPL: – Unlisted investment fund 50,873 – 50,873 – – Listed equity securities in Hong Kong 4,659 4,659 – – – Listed securities outside Hong Kong 1,699 1,699 – – During the years ended 31 December 2020 and 2019, there were no transfers between instruments in Level 1 and Level 2, or transfers into or out of Level 3. The Group’s policy is to recognise transfers between levels of fair value hierarchy as at the end of the reporting period in which they occur. Valuation techniques and inputs used in Level 2 fair value measurements The fair value of unlisted debt securities outside Hong Kong in Level 2 was determined by a present value technique that took into account the future cash flows that a market participant would expect to receive from holding the liability or debt instrument as an asset. The fair value of unlisted investment fund is represented by the reported fair value of their net assets. (ii) Fair values of financial assets and liabilities carried at other than fair value The fair values of receivables, bank balances and other current assets, payables and accruals and current borrowings are assumed to approximate their carrying amounts due to the short- term maturities of these assets and liabilities. All financial instruments are carried at amounts not materially different from their fair values as at 31 December 2020 and 2019. Amounts due from/(to) subsidiaries, associates and holders of non-controlling interests of subsidiaries are unsecured, interest free and have no fixed repayment terms. Given these terms, it is not meaningful to disclose fair values.