ESR Group Limited Interim Report 2023 Notes to Condensed Consolidated Financial Information 30 June 2023 93 29. FINANCIAL INSTRUMENTS BY CATEGORY (continued) 31 December 2022 (continued) Financial liabilities at fair value through profit or loss Financial liabilities at amortised cost Total (Audited) (Audited) (Audited) US$’000 US$’000 US$’000 Financial liabilities Financial liabilities included in trade payables, accruals and other payables 78 303,868 303,946 Interest-bearing bank and other borrowings – 5,496,630 5,496,630 Lease liabilities – 34,188 34,188 Contingent consideration payable – 2,581 2,581 Financial liabilities included in other non-current liabilities 93,687 33,272 126,959 93,765 5,870,539 5,964,304 30. FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS Management is responsible for determining the policies and procedures for the fair value management of financial instruments. At each reporting date, management analyses the movements in the values of financial instruments and determines the major inputs applied in the valuation. The Group reviews with independent valuers on valuation inputs every half yearly, in line with its half year and annual reporting dates. Management has assessed that the fair values of cash and bank balances, amounts due from related parties, trade receivables, financial assets included in prepayments, other receivables and other assets, current interest-bearing bank and other borrowings, amounts due to related parties, trade payables, and financial liabilities included in other payables and accruals approximate to their carrying amounts largely due to the short-term maturities of these instruments. The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values: The fair values of the non-current interest-bearing bank and other borrowings have been calculated by discounting the expected future cash flows using rates currently available for instruments with similar terms, credit risk and remaining maturities. The fair values of listed equity investments are based on quoted market prices. The fair values of unlisted financial assets at fair value have been estimated based on the Group’s share of the net asset value of the investment funds. The net asset value of the investment funds comprise mainly their investment properties whose fair values were determined by an external, independent valuation company, having appropriate recognised professional qualifications and recent experience in the location and category of the properties being valued. Therefore, management has determined that the net asset value of the investment funds represent fair value as at period end.
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