NOTES TO THE FINANCIAL STATEMENTS 31 March 2024 27. FINANCIAL RISK MANAGEMENT (CONT’D) (e) Fair value measurement The University classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: (i) quoted prices (unadjusted) from active markets for identical assets (Level 1); (ii) inputs other than quoted prices in active markets included within Level 1 that are observable for the asset, either directly (i.e. as prices) or indirectly (i.e. derived from prices) (Level 2); and (iii) inputs for the asset that are not based on observable market data (unobservable inputs) (Level 3). The following table shows an analysis of financial instruments measured and carried at fair value and classified by level of fair value measurement hierarchy: Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 At 31 March 2024 Assets Financial assets at fair value through profit or loss: – Quoted debt securities 278,701 – – 278,701 – Quoted unit trusts 96,887 746,316 – 843,203 – Quoted equity securities 34,434 – – 34,434 – Other investments – 8,441 224,101 232,542 Total assets 410,022 754,757 224,101 1,388,880 Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 At 31 March 2023 Assets Financial assets at fair value through profit or loss: – Quoted debt securities 310,733 – – 310,733 – Quoted unit trusts 121,945 623,919 – 745,864 – Quoted equity securities 38,055 – – 38,055 – Other investments – 10,936 168,522 179,458 Total assets 470,733 634,855 168,522 1,274,110 The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the University is the current bid price. These instruments are included in Level 1. The fair value of financial instruments that are not traded in an active market (unlisted unit trusts and other investments) is based on price quotes by the brokers. These instruments are classified as Level 2. Under certain circumstances, where a valuation technique for these instruments is based on significant unobservable inputs, such instruments are classified as Level 3. There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy in the period. p. 90 SINGAPORE UNIVERSITY OF TECHNOLOGY AND DESIGN
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