NTUC Income AR 2018

Notes to the Financial Statements For the Financial Year Ended 31 December 2018 4. Management of insurance and financial risks (continued) (f) Fair value measurements The following table presents our financial assets and liabilities measured at fair value and classified by level of the following fair value measurement hierarchy: (a) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1); (b) inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) (Level 2); and (c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). 2018 Level 1 $’000 Level 2 $’000 Level 3 $’000 Total $’000 Assets Investments designated at fair value through profit or loss – Equities 4,910,958 21 – 4,910,979 – Funds 2,360,311 – – 2,360,311 – Debt securities 22,545,127 14,627 801 22,560,555 Available-for-sale investments – Equities 73,398 – 43,242 116,640 – Funds 96,501 – 1,935,472 2,031,973 – Debt securities 630,041 – – 630,041 30,616,336 14,648 1,979,515 32,610,499 – Derivative financial instruments 4,700 125,549 – 130,249 30,621,036 140,197 1,979,515 32,740,748 Liabilities – Derivative financial instruments (5,202) (62,349) – (67,551) 2017 Level 1 $’000 Level 2 $’000 Level 3 $’000 Total $’000 Assets Investments designated at fair value through profit or loss – Equities 4,773,007 2 – 4,773,009 – Funds 2,431,785 – – 2,431,785 – Debt securities 21,924,457 331,068 902 22,256,427 Available-for-sale investments – Equities 85,376 4 41,538 126,918 – Funds 63,866 – 1,746,242 1,810,108 – Debt securities 666,082 12,078 – 678,160 29,944,573 343,152 1,788,682 32,076,407 – Derivative financial instruments 3,193 147,931 – 151,124 29,947,766 491,083 1,788,682 32,227,531 Liabilities – Derivative financial instruments (1,359) (77,943) – (79,302) The fair value of Level 1 financial instruments, which are traded in active markets (such as trading and available- for-sale securities) is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Group is the last traded price for equity investments and bid prices for fixed income investments. 86 HAND IN HAND