Asia-Pacific Strategic Investments Limited - Annual Report 2021

Notes to the Financial Statements For the financial year ended 30 June 2021

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Financial risk management (continued)

(e)

Fair value measurements (continued)

There were no transfers between Level 1 and Level 2 during the financial years ended 30 June 2021 and 2020.

The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Group is current bid price. These instruments are included in Level 1. The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each balance sheet date. Valuation techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments. Where a valuation technique for these instruments is based on significant unobservable inputs, such instruments are classified as Level 3. As at 30 June 2017, in view that management had the intention to dispose of the financial assets, the fair value of the financial assets was determined based on the bid price from a potential buyer (the “Potential Buyer”). As at 30 June 2020, the negotiation with the Potential Buyer on the terms and conditions of the disposal is still ongoing. As such, the fair value of the financial assets is determined based on the bid price from the Potential Buyer. Following the lapse of the proposed disposal and as there is no progress in the development of the mineral mines since its acquisition to the end of the financial year, management has assessed that there is no realisable value on this investment. Accordingly, the fair value of the financial assets, at FVOCI was determined to be a nominal value of S$1 as at 30 June 2021 in view of the lack of marketability and data to determine the realisable value. Level 3 fair value measurement

The following table presents the changes in Level 3 instruments:

Financial asset, at FVOCI 2021 2020 S$’000 S$’000

Group and Company Beginning of financial year

2,000

2,000

Fair value loss recognised in - other comprehensive income

(2,000)

-

-

End of financial year

2,000

ASIA-PACIFIC STRATEGIC INVESTMENTS LIMITED

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