68 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (c) Fair value estimation (continued) Group Level 1 RM’000 Level 2 RM’000 Level 3 RM’000 Total RM’000 2021 Assets Financial assets at fair value through profit or loss: (i) Derivatives - Foreign currency forward contracts - 1,978 - 1,978 - Commodities futures contracts 1,561 - - 1,561 (ii) Trading securities 79,136 - - 79,136 Financial assets at fair value through other comprehensive income 2,975 - 198,594 201,569 Total assets 83,672 1,978 198,594 284,244 Level 1 RM’000 Level 2 RM’000 Level 3 RM’000 Total RM’000 2021 Liabilities Financial liabilities at fair value through profit or loss: (i) LLA liability - - 3,804,790 3,804,790 (ii) Derivatives - Foreign currency forward contracts - 653 - 653 - Islamic profit rate swap - 3,571 - 3,571 - Commodities futures contracts 3,096 - - 3,096 Total liabilities 3,096 4,224 3,804,790 3,812,110 The Company has no financial assets and liabilities that are measured at fair value at 31 December 2022 and 31 December 2021. There were no transfers between Levels 1 and 2 during the financial year. (i) Financial instruments in Level 1 The fair value of financial instruments traded in active markets is based on quoted market prices at the statement of financial position date. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1. Instruments included in Level 1 comprise primarily equity investments listed in Bursa Malaysia Securities Berhad or foreign stock exchanges classified as trading securities or financial assets at fair value through other comprehensive income and commodity derivatives quoted on Malaysia Derivatives Exchange (“MDEX”) for palm oil, sugar commodity futures contracts, brent crude oil option contracts and other foreign commodity exchanges.
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