DMIT Annual Report 2017

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 52 11. Fair value of financial instruments (continued) Assets and liabilities measured at fair value At 31 December 2016 Level 1 Level 2 Level 3 Total (restated) Trading securities Equity securities 1 10,403 - 10,404 Debt securities - 16,606 - 16,606 Investment securities - carried at fair value through profit or loss Debt securities - 79,501 - 79,501 Investment securities - available-for-sale Equity securities 59,766 65 84,255 144,086 Debt securities - 1,387,631 - 1,387,631 Hedging derivatives 30 126 - 156 Total assets measured at fair value 59,797 1,494,332 84,255 1,638,384 Derivatives held for trading 8 - - 8 Total liabilities measured at fair value 8 - - 8 Reconciliation of Level 3 items Investment securities Equity securities Debt securities Total assets Total liabilities At 1 January 2016 82,824 - 82,824 - Total (losses)/gains (6,509) - (6,509) - Gains - other comprehensive income 11,478 - 11,478 - Purchases - - - - Sales (3,538) - (3,538) - At December 2016 84,255 - 84,255 - Total profit for the year included in profit or loss for assets/liabilities held At 31 December 2016 1,777 - 1,777 - There were no transfers between Levels 1, 2 and 3 during the year. (a) Financial instruments in Level 1 The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1. Instruments included in Level 1 comprise primarily Pakistan Stock Exchange equity investments classified as trading securities or available for sale.