. 12 6
NOTESTOTHE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
BAKER
TECHNOLOGY
L IMI TED
THE BE ST
I N US
26.
FAIRVALUEOFASSETSAND LIABILITIES
(a)
Fair valuehierarchy
TheGroup categories fair valuemeasurement using a fair value hierarchy that is dependent on the
valuation inputs used as follows:
– Level 1–Quotedprices (unadjusted) inactivemarket for identical assetsor liabilities that the
Groupcan access at themeasurement date;
– Level 2– Inputs other thanquotedprices includedwithin Level 1 that areobservable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived fromprices); and
– Level 3–Unobservable inputs for the asset or liability.
Fair valuemeasurements that use inputs of different hierarchy levels are categorized in its entirety
in the same level of the fair value hierarchy as the lowest level input that is significant to the entire
measurement.
(b)
Assetsand liabilitiesmeasuredat fair value
GroupandCompany
2017
2016
$’000
$’000
Non-current:
Available-for-sale financial assets
–Corporatebonds (quoted) – at fair value (Level 1)
1,062
2,293
Current:
Available-for-sale financial assets
–Corporatebonds (quoted) – at fair value (Level 1)
1,068
3,218
Determinationof fair value
Quoted equity instruments: Fair value is determined directly by reference to their publishedmarket
bidprice at balance sheet date.
(c)
Assetsand liabilitiesbyclasses thatarenotmeasuredat fairvalueandwhosecarryingamountsare
reasonableapproximationof fair value
Thecarryingamountsof the trade receivables, deposits, amountdue from/(to) subsidiaries, and trade
andother payables are reasonable approximationof fair values, due to their short-termnature.
