NOTES TO FINANCIAL STATEMENT

Investments in financial assets

	2021	2020
	AED	AED
Investments carried at FVTOCI
Quoted equity securities	41,335,714	34,891,017
Quoted Tier 1 perpetual securities	3,011,000	7,323,319
Unquoted Tier 1 perpetual securities	6,950,000	6,950,000
	51,296,714	49,164,336
Investments carried at FVTPL
Quoted equity securities	7,249,031	5,554,455
Unquoted debt securities	5,000,000	5,000,000
	12,249,031	10,554,455

 

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

	2021	2020
	AED	AED
Investments carried at FVTOCI
Fair value at 1 January	49,164,336	59,996,256
Disposals	(8,105,560)	(11,072,607)
Change in fair value	10,237,938	240,687
Fair value at the end of the reporting period	51,296,714	49,164,336
Investments carried at FVTPL
Fair value at 1 January	10,554,455	13,607,267
Purchases	3,152,212	5,997,765
Disposals	(2,133,023)	(9,432,264)
Change in fair value taken to profit and loss	675,387	381,687
Fair value at the end of the reporting period	12,249,031	10,554,455

 

The geographical distribution of investments is as follows:

 

	2021	2020
	AED	AED
Quoted UAE equity securities	46,841,483	39,388,459
Quoted outside UAE securities	3,011,000	7,323,319
Unquoted UAE securities	5,000,000	5,000,000
Unquoted UAE Tier 1 securities	6,950,000	6,950,000
Quoted outside UAE equity securities	1,743,262	1,057,013
	63,545,745	59,718,791

 

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 2021
Investments at FVTOCI
Investment in quoted securities	(a)	41,335,714	–	–	41,335,714
Quoted Tier 1 perpetual securities		3,011,000	–	–	3,011,000
Unquoted Tier 1 perpetual securities		–	–	6,950,000	6,950,000
		44,346,714	–	6,950,000	51,296,714
Investments at FVTPL
Investment in quoted equity securities	(a)	7,249,031	–	–	7,249,031
Unquoted Tier 1 perpetual securities		–	–	5,000,000	5,000,000
		7,249,031	–	5,000,000	12,249,031
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

 

(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.