190 CSE Global Limited 32. Fair value of assets and liabilities The Company categorises fair value measurements using a fair value hierarchy that is dependent on the valuation inputs used as follows: (a) Level 1 - Quoted prices (unadjusted) in active market for identical assets or liabilities that the Company can access at the measurement date (b) Level 2 - Inputs other that quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, and (c) Level 3 - Unobservable inputs for the asset or liability. Fair value measurements that use inputs of different hierarchy levels are categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The fair value of a financial asset or liability is the amount at which the asset or liability could be exchanged or settled between knowledgeable and willing parties in an arm’s length transaction, other than in a forced or liquidation sale. Significant unobservable inputs other than quoted prices (Level 2) Significant unobservable inputs other than quoted prices (Level 2) 2024 2023 $’000 $’000 Fair value of financial instrument by classes that are not carried at fair value but for which fair value is disclosed Finance lease receivables 212 389 Assets and liabilities measured at fair value Derivative liability – (6) At 31 December 212 383 The following is a description of the valuation techniques and inputs used in the fair value measurement for assets and liabilities that are categorised within Level 2 of the fair value hierarchy: Derivatives Interest rate swap contracts are valued using a valuation technique with market observable inputs. The most frequently applied valuation techniques include swap models, using present value calculations. The models incorporate various inputs including the credit quality of counterparties and interest rate curves. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2024
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