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FoR BetteR RetuRns Annual Report 2022 243

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

34. FAIR VALUE OF FINANCIAL INSTRUMENTS
(a) Fair value of financial instruments by classes that are not carried at fair value with its carrying amount

Group

2022 2021
Carrying Carrying
Amount Fair Value Amount Fair Value
RM’000 RM’000 RM’000 RM’000

Financial Assets
loans and receivables 1,040,896 1,040,896 2,999,261 2,999,261
debt instruments at amortised costs 16,372,543 16,502,713 15,792,014 16,438,735

Financial Liabilities
borrowings 1,351,564 1,351,564 1,977,004 1,977,004

KWAP

2022 2021
Carrying Carrying
Amount Fair Value Amount Fair Value
RM’000 RM’000 RM’000 RM’000
Financial Assets
loans and receivables 1,272,637 1,272,637 3,289,233 3,289,233
debt instruments at amortised costs 16,372,543 16,502,713 15,792,014 16,438,735

(b) Determination of fair value

(i) Cash and cash equivalents, receivables and payables

the carrying amounts of the above financial assets and liabilities are determined based on the reasonable
approximation of fair value due either to the short term nature or being repayable on demand.

(ii) Loans receivable
the fair value of loans receivables is estimated by the discounting of the estimated future cash flows using the
current interest rates for financial assets with similar risk profile.