PTT Global Chemical Public Company Limited and its Subsidiaries For the year ended 31 December 2023 PTT Global Chemical Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2023 97 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 financial derivatives 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 over-the-counter commodity derivatives are based on an estimated price by the organization that has expertise in petroleum and petrochemical areas as well as reliability from buyers and sellers in markets. The price forecast methodology takes account of fundamental factors including demand, supply and other factors that will affect the price direction in the future. 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 instruments and equity instruments 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. Consolidated financial statements Separate financial statements Reconciliation of Level 3 fair values 2023 2022 2023 2022 (in million Baht) Investments in non-current financial assets Balance as at 1 January 1,694 1,309 10 4 Total gains or (losses): in profit or loss (35) - - in other comprehensive income (57) (40) 2 (4) Purchases/ issues 233 398 - 10 Effect from exchange differences on translating financial statements 4 27 - - Balance as at 31 December 1,839 1,694 12 10 341 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
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