- 107 - Measurement of fair values Level 1 of fair values for debt instruments measured at fair value through profit or loss are based on quoted bid price as at the end of reporting period by references from the Stock Exchange of Thailand. For equity instruments measured at fair value through other comprehensive income are based on closing price as at the end of reporting period in the Stock Exchange of Thailand or New York Stock Exchange. Level 2 of fair values for debt instruments measured at fair value through other comprehensive income are based on the yield rate quoted by the Thai Bond Market Association or other markets and for simple over-the-counter financial derivative and commodity derivative instruments are based on broker quotes. Those quotes are tested for reasonableness by discounting expected future cash flows using market interest rate for a similar instrument at the measurement date. Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the Group and counterparty when appropriate. For fixed-rate long-term borrowings are based on discounted future cash flows for the remaining periods using market interest rate for a similar instrument at the measurement date. For debentures are based on the last closing price on the Thai Bond Market Association at the measurement date. Level 3 of fair value for debt instrument measured at fair value through profit or loss are as follows; - For investment in a startup company, is based on valuation of the latest fundraising round. - For investments in non-marketable securities, the fair values are based on the discounted present value of the future cash flows estimated based on available performance indicators at an appropriate interest rate. Fair values for equity instruments measured at fair value through other comprehensive income are as follows; - For investments in startup companies, the fair values are based on valuation of the latest fundraising round. - For investments in non-marketable securities, the fair values are based on cost which considered as estimated fair values, except there are significant changes in their operations. - For investments in funds, the fair values are referred to the net asset value of the funds. Fair values for derivative liability, which is the put option over non-controlling interest, is based on present value of expected payments which is determined by considering the forecast earnings before financial costs, income taxes, depreciation and amortisation and discounted using discount rate. Reconciliation of Level 3 fair value measurements of financial instruments The following table includes the financial assets and the financial liability that are measured subsequently at fair value on Level 3. Unit : Million Baht Consolidated financial statements Separate financial statements Investments in non-current financial assets Balance as at January 1, 2021 700 4 Total gains or (losses): in profit or loss - - in other comprehensive income 174 - Business acquisition (see Note 4) 191 - Purchases/ issues 242 - Disposals/ settlements - - Change in fair value measurement level (64) - Effect of change in foreign exchange rates 66 - Balance as at December 31, 2021 1,309 4 339 BUSINESS OPERATION AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL REPORTS AND FINANCIAL STATEMENTS APPENDIX
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