122 46.4 Derivatives Risk of derivative of the subsidiary which operate in derivative transactions is the risk that the fair value of equities and derivatives with linked to equity instrument changes as a result of changes in market price of stock. The majority of investment in equity instrument of the subsidiary is marketable equity instrument which mostly is trading securities held for hedging against derivatives, which have equity instrument as an underlying. Both equity and derivatives instruments are measured at fair value through profit and loss (FVTPL) for hedging purpose. The subsidiary manages such risk at acceptable levels through risk management policies and establishment of proper risk limits, regularly review of policies and outstanding to reflect the current market conditions, and establishment of a function to monitor and control risks in accordance with the Company’s policies. 46.5 Fair value of financial instruments As at 31 December 2021 and 2020, the Company and its subsidiaries had financial assets and financial liabilities that were measured at fair value, and those that were measured at cost but has to disclose the fair value, which presented based on fair value hierarchy as follows: (Unit: Million Baht) Consolidated financial statements 2021 Book value Fair value Total Level 1 Level 2 Level 3 Financial assets measured at fair value Financial assets measured at fair value through profit or loss 2,781 2,781 1,778 653 350 Derivatives assets 206 206 206 - - Investments in debt securities measured at fair value through other comprehensive income 10,416 10,416 - 10,416 - Investments in equity securities designated to be measured at fair value through other comprehensive income 2,708 2,708 2,434 - 274 Financial liabilities measured at fair value Derivatives liabilities 18 18 18 - - Non-financial assets measured at fair value Land, premises and equipment - land and buildings 166 166 - - 166 Financial assets and liabilities non-measured at fair value Cash 4 4 4 - - Inter bank and money market items (assets) 8,947 8,947 3,153 5,794 - Loan to customers 55,221 54,751 - 5,223 49,528 Receivables from purchase and sale securities 843 843 - 843 - Other assets 697 697 - 697 - Interbank and money market item (liabilities) 15,984 15,995 - 2,147 13,848 Debts issued and borrowings 34,308 34,494 - 34,494 - Payables from purchase and sale of securities 1,264 1,264 - 1,264 - Other liabilities - accrued interest expenses 220 220 - 220 - 338
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