Annual Report 2020

2020 Annual Report Transport International Holdings Limited 233 Notes to the Financial Statements (Expressed in Hong Kong dollars unless otherwise indicated) 32 Financial risk management and fair values of financial instruments (continued) (f) Fair values measurement (i) Financial instruments measured at fair value Fair value hierarchy The following table presents the fair value of the Group’s 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 2020 2019 Fair value measurements categorised into Fair value measurements categorised into Fair value Level 1 Level 2 Level 3 Fair value Level 1 Level 2 Level 3 $’ 000 $’ 000 $’ 000 $’ 000 $’ 000 $’ 000 $’ 000 $’ 000 Recurring fair value measurements Assets: Investments in debt securities – listed 1,155,656 1,155,656 – – 1,449,971 1,449,971 – – Unlisted equity securities 517,575 – – 517,575 515,926 – – 515,926 Derivative financial instruments – other forward foreign exchange contracts 1,546 – 1,546 – – – – – 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.