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ANNUAL REPORT 2014
91Notes to the Financial Statements Supplementary Information
31. Financial risk management (continued)
2014 2013
Carrying
amount
HK$M
Fair value
HK$M
Carrying
amount
HK$M
Fair value
HK$M
Company
Loans receivable 601 650 663 719
Long-term loans (15,925) (16,340) (19,002) (19,587)
Obligations under finance leases (46,638) (48,710) (48,551) (51,405)
Pledged security deposits 520 655 872 1,108
These financial instruments are measured using quoted prices in active markets for similar assets or liabilities, or
using valuation techniques in which all significant inputs are based on observable market data. The most significant
inputs are market interest rates.
The carrying amounts of other financial assets and liabilities are considered to be reasonable approximations to
their fair values.
(f) Financial instruments carried at fair value
The following table presents the carrying value of financial instruments measured at fair value as at 31st December
2014 across three levels of the fair value hierarchy defined in HKFRS 13 “Fair Value Measurement” with the fair value
of each financial instrument categorised in its entirety based on the lowest level of input that is significant to that
fair value measurement. Level 1 includes financial instruments with fair values measured using only unadjusted
quoted prices in active markets for identical assets or liabilities. Level 2 includes financial instruments with fair
values measured using input other than quoted prices within Level 1 that are observable for the asset or liability,
either directly or indirectly. The fair value has been determined based on quotes from market makers or discounted
cash flow valuation techniques in which all significant inputs are based on observable market data. The most
significant inputs are market interest rates, exchange rates and fuel price. Level 3 includes financial instruments
with fair values measured using dividend discount model and discounted cash flow valuation techniques in which
any significant input is not based on observable market data.
2014
Group Company
Level 1
HK$M
Level 2
HK$M
Level 3
HK$M
Total
HK$M
Level 1
HK$M
Level 2
HK$M
Level 3
HK$M
Total
HK$M
Recurring fair value
 measurement
Assets
Investments at fair value
 – listed 284 – – 284 – – – –
 – unlisted – – 1,196 1,196 – – 1,112 1,112
Liquid funds
 – funds with investment
   managers – 6,780 – 6,780 – – – –
 – other liquid investments – 1,295 – 1,295 – 1,179 – 1,179
Derivative financial assets – 3,269 – 3,269 – 3,186 – 3,186
284 11,344 1,196 12,824 – 4,365 1,112 5,477
Liabilities
Obligations under finance
 leases designated as at fair
 value through profit or loss – (3,129) – (3,129) – (3,129) – (3,129)
Derivative financial liabilities – (15,038) – (15,038) – (15,011) – (15,011)
– (18,167) – (18,167) – (18,140) – (18,140)