Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
3 Financial risk management (Continued)
3.3 Fair value estimation (Continued)
If one or more of the significant inputs is not based on observable
market data, the instrument is included in level 3.
3
3.3
3
Specific valuation techniques used to value financial instruments
include:
• Quoted market prices or dealer quotes for similar
instruments.
•
• The fair value of derivative liabilities is determined using
Binominal model.
•
• Other techniques, such as discounted cash flow analysis,
are used to determine fair value for the remaining financial
instruments.
•
There were no significant transfers of financial assets between
level 1 and level 2 fair value hierarchy classifications.
12
The following table presents the changes in level 3 instruments
for the year ended 31 December 2011 and 2010.
3
Availablefor-sale
financial
assets
Financial
assets
at fair value
through
profit or loss
Financial
liabilities
at fair value
through
profit or loss
Total
HK$ Million HK$ Million HK$ Million HK$ Million
At 1 January 2010 22.2 12.7 (266.3) (231.4)
Net gain recognised in equity 1.3 0.6 1.4 3.3
At 31 December 2010 23.5 13.3 (264.9) (228.1)
At 1 January 2011 23.5 13.3 (264.9) (228.1)
Addition – – (13.2) (13.2)
Disposal (1.4) – – (1.4)
Net gain recognised in equity (0.1) 0.5 3.3 3.7
At 31 December 2011 22.0 13.8 (274.8) (239.0)
116 HKC (Holdings) Limited • Annual Report 2011