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Notes to the Consolidated Financial Statements
(Thousands of US dollars)
47
Dar Al-Maal Al-Islami Trust
Annual Report 2014
11. Fair value of financial
instruments
The table below analyses financial instruments carried at fair value, by valuation
method. The different levels have been defined as follows:
•
Quoted prices (unadjusted) in active markets for identical assets or liabilities
(Level 1);
•
Inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly (that is, as prices) or indirectly (that is,
derived from prices) (Level 2);
•
Inputs for the asset or liability that are not based on observable market data
(that is, unobservable inputs) (Level 3).
In the opinion of Group management, the fair value of those financial instruments
which are measured at amortised cost in the consolidated statement of financial
position are not significantly different from their carrying values since assets and
liabilities are either short term in nature or in the case of customer financing and
deposits, are linked to the market variable rates and hence are being regularly
repriced.
Assets and liabilities measured at fair value
At 31 December 2014
Level 1
Level 2
Level 3
Total
Trading securities
Equity securities
2,618
10,257
-
12,875
Debt securities
-
270,441
-
270,441
Investment securities -
available-for-sale
Equity securities
56,880
2,073 211,384 270,337
Debt securities
-
1,006,091
-
1,006,091
Hedging derivatives
48
(14)
-
34
Total assets
59,546 1,288,848 211,384 1,559,778
Derivatives held for trading
91
-
-
91
Total liabilities
91
-
-
91
Reconciliation of Level 3 items
Investment securities
Equity
Debt
Total
Total
securities
securities
Assets
liabilities
At 1 January 2014
80,377
-
80,377
-
Total profit/(loss)
(4,976)
-
(4,976)
-
Profit/(loss) - other comprehensive
income/(loss)
(4,686)
-
(4,686)
-
Purchases
14,299
-
14,299
-
Sales
(1,227)
-
(1,227)
-
Settlements
-
-
-
-
Transfers into Level 3
127,597
-
127,597
-
At December 2014
211,384
-
211,384
-
Total profit/(losses) for the year included in profit or loss for assets/liabilities held
At 31 December 2014
(4,976)
-
(4,976)
-