DMIT_Annual_Report_2018_EN

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 59 11. Fair value of financial instruments (continued) 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) (a) Financial instruments in Level 1 The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting 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 Investment securities carried at fair value through profit or loss or investment securities at FVOCI.