ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C15 Classification and fair value of financial instruments (continued) Movements in Level 3 financial instruments measured at fair value The following table presents the reconciliation for all financial instruments measured at fair value based on significant unobservable inputs (Level 3). Group 2020 2019 $’000 $’000 Associate At 1 January 5,847 – Transfer from Level 2 20,296 7,825 Total unrealised losses recognised in profit or loss, other expenses (5,285) (1,978) At 31 December 20,858 5,847 Equity instruments (unquoted) At 1 January 9,437 – Transfer from Level 2 13,701 9,437 At 31 December 23,138 9,437 43,996 15,284 Recognition and measurement (a) Non-derivative financial assets and liabilities Classification and subsequent measurement On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. / ST ENG I NEER I NG 216