Annual Report 2021

170 Notes to the Financial Statements Annual Report 2021 Miramar Hotel and Investment Company, Limited 23 Financial risk management and fair values (Continued) (e) Fair value measurement (i) Financial assets measured at fair value The following table presents the fair value of financial instruments measured at the end of the reporting period on a recurring basis, categorised into the three-level fair value hierarchy as defined in HKFRS 13, Fair value measurement. The level into which a fair value measurement is classified is determined with reference to the observability and significance of the inputs used in the valuation technique as follows: – Level 1 valuations: Fair value measured using only Level 1 inputs, i.e. unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. – Level 2 valuations: Fair value measured using Level 2 inputs, i.e. observable inputs which fail to meet Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for which market data are not available. – Level 3 valuations: Fair value measured using significant unobservable inputs. Fair value at 31 December Fair value measurements at 31 December 2021 2021 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 39,840 39,840 – – Financial assets measured at FVPL: – Unlisted investment fund 61,444 – 61,444 – – Listed equity securities in Hong Kong 955 955 – – Fair value at 31 December Fair value measurements at 31 December 2020 2020 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 70,064 70,064 – – – Listed equity securities outside Hong Kong 8,897 8,897 – – Financial assets measured at FVPL: – Unlisted investment fund 55,429 – 55,429 – – Listed equity securities in Hong Kong 6,104 6,104 – – – Listed securities outside Hong Kong 1,406 1,406 – –