DMIT Annual Report 2017

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 51 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 2017 Level 1 Level 2 Level 3 Total Trading securities Equity securities - 9,956 - 9,956 Debt securities - 304,895 - 304,895 Investment securities - carried at fair value through profit or loss Debt securities - 76,878 - 76,878 Investment securities - available-for-sale Equity securities 50,014 - 175,391 225,405 Debt securities - 1,168,337 - 1,168,337 Total assets measured at fair value 50,014 1,560,066 175,391 1,785,471 Derivatives held for trading - 595 - 595 Total liabilities measured at fair value - 595 - 595 Reconciliation of Level 3 items Investment securities Equity securities Debt securities Total assets Total liabilities At 1 January 2017 84,446 - 84,446 - Total (losses)/gains (8,403) - (8,403) - Gains - other comprehensive income 1,137 - 1,137 - Purchases 127,441 - 127,441 - Sales (29,230) - (29,230) - At 31 December 2017 175,391 - 175,391 - Total profit for the year included in profit or loss for assets/liabilities held At 31 December 2017 (8,403) (8,403)