Page 173 - KWAP_AR2022

FoR BetteR RetuRns Annual Report 2022 171

notes to the
financial statements
for the year ended 31 december 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.21 Employee Benefits (continued)

(b) Long term benefits

payments of long term benefits post-retirement and/or after the expiry of the contracts are recognised as
employee benefits expenses on an accrual basis in the current year of the statement of comprehensive
income. at the same time, such amounts are also recognised as liabilities categorised as employee benefits
in the statement of financial position. types of long term benefits recognised on an accrual basis are as
follows:
• Cash award in lieu of annual leave; and
• Post-retirement medical benefit.
the provision for post – retirement medical benefits to retirees is based on the annual actuarial valuation by
an external valuer.
2.22 Fair Value Measurement

financial instruments, such as derivatives and financial investments, are measured at fair value at each reporting
date. the fair values of financial instruments measured at amortised cost are set out in note 34 to the financial
statements.
fair value is the price that would be received upon the sale of assets or paid upon the transfer of liabilities in an
orderly transaction between market participants at the measurement date. the fair value measurement is based
on the presumption that the transactions for the sale of assets or transfer of liabilities occur either:

• In the principal market for the assets or liabilities, or
• In the absence of the principal market, in the most advantageous market for the assets or liabilities.
the principal or the most advantageous market must be accessible by the group and KWap. the fair value of
assets or liabilities are measured using the assumptions that the market participants would use when pricing the
assets or liabilities, assuming that the market participants will behave in their economic best interest.

the fair value measurement of non-financial assets takes into consideration the market participant’s ability to
generate the economic benefits by the utilisation of the assets in its highest and best use or by sale to another
market participant that would utilise the assets in its highest and best use.
the group and KWap employ valuation techniques that are deemed appropriate in circumstances whereby
sufficient data are available for the fair value measurement, with the maximisation of the use of relevant observable
inputs and minimisation of the use of unobservable inputs.