Annual Report 2014
The Group performs a fair value assessment of its financial assets and liabilities, as required by IFRS 7 Financial Instruments: Disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability.
The Group measures fair values for financial assets recorded on the statement of financial position at fair value using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:
The foreign currency forward contracts are measured based on observable spot exchange rates and the yield
curves of the respective currencies.
The fair value of the unquoted debt securities has been determined using a discounted cash flow model, by reference to quoted market prices for similar instruments.
The fair value of unquoted equity instruments has been determined based on market approach using price/net assets ratio for similar companies.
| December 31, 2014 | ||||
|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Total | |
| Financial assets at fair value though profit or loss | 11 383 661 | - | 58 330 | 11 441 991 |
| Central counterparty financial assets and liabilities (currency transactions) | 35 208 628 | - | - | 35 208 628 |
| Investments available-for-sale | 76 025 196 | 4 890 812 | 34 307 | 80 950 315 |
| December 31, 2013 | ||||
|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Total | |
| Financial assets at fair value though profit or loss | 16 131 684 | 5 042 | 62 999 | 16 199 725 |
| Central counterparty financial assets (currency transactions) | 2 301 781 | - | - | 2 301 781 |
| Investments available-for-sale | 71 047 470 | 3 117 458 | 87 124 | 74 252 052 |
| FVTPL | AFS | |
|---|---|---|
| Balance at December 31, 2012 | 66 960 | 167 913 |
| Loss recognized in net loss on financial assets at fair value through profit or loss | (3 961) | - |
| Level 3 securities sold | - | (38 697) |
| Loss recognized in net loss on financial assets available-for-sale | - | (42 264) |
| Foreign exchange gain | - | 172 |
| Balance at December 31, 2013 | 62 999 | 87 124 |
| Loss recognized in net loss on financial assets at fair value through profit or loss | (4 669) | - |
| Loss recognized in net loss on financial assets available-for-sale | - | (2 001) |
| Level 3 securities purchased | - | 25 876 |
| Level 3 securities sold | - | (78 599) |
| Foreign exchange gain | - | 1 907 |
| Balance at December 31, 2014 | 58 330 | 34 307 |
Management of the Group considers that the fair value of financial assets and liabilities approximates their carrying value.