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244 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) FoR BEttER REtURNS

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

34. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)
(b) Determination of fair value (continued)

(iii) Other loans and borrowings

the carrying amount of the current portion of other loans and borrowings is based on the reasonable
approximation of fair value due to the significant impact of discounting.

the carrying amount of certain other loans and borrowings is based on the reasonable approximation of fair
value due to their nature being floating rate instruments repriced to the market interest rates near the reporting
date.
the fair value of non-current other loans and borrowings, other than the floating rate instruments, is estimated
by the discounting of the expected future cash flows at the market incremental lending rate for similar types
of borrowings at the reporting date.

(iv) Financial Assets at Fair Value Through Profit Or Loss
(a) Quoted bonds

the fair value of quoted bonds is directly determined by reference to the published market bid prices at
the reporting date.

(b) Unquoted bonds
the fair value of unquoted bonds is estimated using the discounted cash flow model based on various
assumptions, including the current and expected credit losses, market rates of interest and assumptions
in relation to market liquidity.
(v) Derivative Financial Assets and Liabilities

(a) Forward contracts
the fair value of forward contracts is determined using the observable exchange rates from publicly
available sources and through the extrapolation and interpolation techniques.
(b) Cross currency swaps

the fair value of cross currency swaps is determined by discounting the anticipated future cash flows
using the standard market interest rate yield curves developed from observable and publicly available
quoted rates.