Dagang NeXchange Berhad Annual Report 2018

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (v) Fair value measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using a valuation technique. The measurement assumes that the transaction takes place either in the principal market or in the absence of a principal market, in the most advantageous market. For non-financial asset, the fair value measurement takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. However this basis does not apply to share-based payment transactions. For financial reporting purposes, the fair value measurements are analysed into level 1 to level 3 as follows:- Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liability that the entity can access at the measurement date; Level 2: Inputs other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3: Inputs are unobservable inputs for the asset or liability. The transfer of fair value between levels is determined as of the date of the event or change in circumstances that caused the transfer. 3. PROPERTY, PLANT AND EQUIPMENT Office equipment, Capital Freehold Office Plant and Motor furniture Computer work-in- land Buildings renovations machinery vehicles and fittings equipment progress Total Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Cost At 1 January 2017 7,669 2,539 6,200 28,147 2,174 3,909 42,031 2,808 95,477 Additions - - 344 2,777 546 151 2,917 32,765 39,500 Disposals - - - - (1,065) - (8) - (1,073) Written off - - - - - - (786) - (786) Reclassifications 16,873 5,624 - - - 64 1,362 (23,923) - Adjustment - - - - - 13 - (58) (45) At 31 December 2017/ 1 January 2018 24,542 8,163 6,544 30,924 1,655 4,137 45,516 11,592 133,073 Acquisitions through business combinations (Note 27) - 1,014 566 - 1,375 454 1,053 54 4,516 Disposal of a subsidiary - - - - - (1) (4) - (5) Additions - - 147 - - 172 857 11,834 13,010 Disposals - - - (11,194) - (6) (51) - (11,251) Written off - - (336) - - (3) - - (339) Reclassifications - - 5 11,354 - 38 - (11,397) - Adjustment - - - - - - - 3,000 3,000 At 31 December 2018 24,542 9,177 6,926 31,084 3,030 4,791 47,371 15,083 142,004 125 Annual Report 2018 Notes to the Financial Statements (CONTINUED) FINANCIAL STATEMENTS