Annual Report 2019

229 Transport International Holdings Limited 2019 Annual Report Notes to the Financial Statements 31 Financial risk management and fair values of financial instruments (continued) (f) Fair values measurement (continued) (ii) Valuation techniques and inputs used in Level 2 fair value measurement The fair values of forward foreign exchange contracts as at 31 December 2019 and 2018 in Level 2 were marked to market using quoted market prices from financial institutions. (iii) Information about Level 3 fair value measurement Valuation technique Significant unobservable inputs Percentage Unlisted equity instruments Market comparable companies Discount for lack of marketability 35% (2018: 35%) The fair value of unlisted equity instruments is determined using the market approach of comparable companies adjusted for lack of marketability discount. The fair value measurement is negatively correlated to the discount for lack of marketability. As at 31 December 2019, it is estimated that with all other variables held constant, a decrease/increase in the discount for lack of marketability by 5% would have increased/decreased the Group’s other comprehensive income by $39,687,000 (2018: $39,386,000). The movement during the year in the balance of Level 3 fair value measurement is as follows: 2019 2018 $’ 000 $’ 000 Unlisted equity securities: At 1 January 512,019 – Transfer to Level 3 upon the initial adoption of HKFRS 9 – 491,511 Net unrealised gains recognised in other comprehensive income during the year 3,907 20,508 At 31 December 515,926 512,019