102
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
29 FINANCIAL INSTRUMENTS: INFORMATIONON FINANCIAL RISKS (CONT’D)
Classification of financial assets and liabilities and fair values (cont’d)
*
Excludes prepayments
# Excludes derivatives and contingent consideration payable (shown separately) and advance
receipts from customers
A description of the valuation techniques and the significant other observable inputs
used in the fair value measurement are as follows:
Financial instruments measured at fair value
Type
Valuation technique
Derivative financial
liabilities
The fair values are based on broker quotes. Similar
contracts are traded in an active market and the quotes
reflect the actual transactions in similar instruments.
Contingent consideration
payable
Income approach based on the expected payment
amount and their associated probabilities (i.e.
probability-weighted). When appropriate, it is
discounted to present value.
Loans due from/(to) a
subsidiary
Discounted cash flows
30 COMMITMENTS
The Group have the following commitments as at the reporting date:
Group
2016
2015
$
$
Development expenditure contracted for development
properties but not provided for in the financial
statements
3,872,092 8,880,517
Expenditure contracted for property, plant and equipment
but not provided for in the financial statements
– 1,339,005
3,872,092 10,219,522
In addition, as part of the provisions of an agreement entered into between a subsidiary
and a non-controlling interest, the Group will bear all costs relating to or in any way
connectedwith the design, planning, project management, supervision, conduct, launch,
marketing and promotion of “The Bay” project and the operation of the subsidiary, other
than construction costs, sales agency commission and the relevant developer charges.
