60
TIH Limited
19 Financial instruments (continued)
Measurement of fair values
(i)
Valuation techniques and significant unobservable inputs
The following table shows the valuation technique used in measuring Level 2 and Level 3 fair
values, as well as the significant unobservable inputs used.
Financial instruments measured at fair value
Type
Valuation
technique
Significant
unobservable
inputs
Sensitivity to changes in
significant unobservable inputs
Group and Company
Available-for-sale
investments
Adjusted net asset
value
Liquidity
discount
(20%-85%)
The estimated fair value would
increase if the liquidity discount
rate was lower.
Derivatives – Forward
exchange contracts
The fair values are
based on broker
quotes. Similar
contracts are traded
in an active market
and the quotes
reflect the actual
transactions in
similar instruments
Not applicable. Not applicable.
Management considers that changing one or more of the significant unobservable inputs used in
other reasonably possible alternative assumptions would not result in a significant change in the
estimated fair value.
Financial instruments not measured at fair value but for which fair values are disclosed
Type
Valuation technique
Group and Company
Convertible bonds
Discounted cash flows
