NOTES TO FINANCIAL STATEMENT

Investments in financial assets

Investments in financial assets

	2020	2019
	AED	AED
Investments carried at FVTOCI
Quoted equity securities	34,891,017	38,005,863
Quoted Tier 1 perpetual securities	7,323,319	15,040,393
Unquoted Tier 1 perpetual securities	6,950,000	6,950,000
	49,164,336	59,996,256
Investments carried at FVTPL
Quoted equity securities	5,554,455	11,607,267
Unquoted debt securities	5,000,000	2,000,000
	10,554,455	13,607,267

 

The movement in the investments in financial assets is as follows:

	2020	2019
	AED	AED
Investments carried at FVTOCI
Fair value at 1 January	59,996,256	61,532,290
Purchases	–	12,034,256
Disposals	(11,072,607)	(17,817,189)
Change in fair value	240,687	4,246,899
Fair value at the end of the reporting period	49,164,336	59,996,256
Investments carried at FVTPL
Fair value at 1 January	13,607,267	19,205,049
Purchases	5,997,765	2,094,970
Disposals	(9,432,264)	(8,095,029)
Change in fair value taken to profit and loss	381,687	402,277
Fair value at the end of the reporting period	10,554,455	13,607,267

 

The geographical distribution of investments is as follows:

 

	2020	2019
	AED	AED
Quoted UAE equity securities	39,388,459	47,846,197
Quoted outside UAE debt securities	7,323,319	15,040,393
Unquoted UAE debt securities	11,950,000	8,950,000
Quoted outside UAE equity securities	1,057,013	1,766,933
	59,718,791	73,603,523

 

Management considers that the fair values of financial assets and financial liabilities that are not measured at fair value approximates to their carrying amounts as stated in the financial statements and are classified as level 3 in accordance with the IFRS 13 hierarchy.

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value into Levels 1 to 3 based on the degree to which the fair value is observable.

• Level 1 – fair value measurements derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2 – fair value measurements derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
• Level 3 – fair value measurements derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

 

	Note	Level 1	Level 2	Level 3	Total
		AED	AED	AED	AED
31 December 2020
Investments at FVTOCI
Investment in quoted securities	(a)	34,891,017	–	–	34,891,017
Quoted Tier 1 perpetual securities		7,323,319	–	–	7,323,319
Unquoted Tier 1 perpetual securities		–	–	6,950,000	6,950,000
		42,214,336	–	6,950,000	49,164,336
Investments at FVTPL
Investment in quoted equity securities	(a)	5,554,455	–	–	5,554,455
Unquoted Tier 1 perpetual securities		–	–	5,000,000	5,000,000
		5,554,455	–	5,000,000	10,554,455
31 December 2019
Investments at FVTOCI
Investment in quoted securities	(a)	38,005,863	–	–	38,005,863
Quoted Tier 1 perpetual securities		15,040,393	–	–	15,040,393
Unquoted Tier 1 perpetual securities		–	–	6,950,000	6,950,000
		53,046,256	–	6,950,000	59,996,256
Investments at FVTPL
Investment in quoted equity securities	(a)	11,607,267	–	–	11,607,267
Unquoted Tier 1 perpetual securities		–	–	2,000,000	2,000,000
		11,607,267	–	2,000,000	13,607,267

 

(a) Fair values have been determined by reference to the quoted prices at the reporting date.

 

During the year, there were no transfers between Level 1 and Level 2 fair value measurement and no transfers into or out of Level 3 fair value measurements.