NOTES TO FINANCIAL STATEMENT

Investments in financial assets

	2022	2021
	AED	AED
Investments carried at FVTOCI
Quoted equity securities	30,997,354	41,335,714
Quoted Tier 1 perpetual securities	2,555,228	3,011,000
Unquoted Tier 1 perpetual securities	6,950,000	6,950,000
	40,502,582	51,296,714
Investments carried at FVTPL
Quoted equity securities	6,948,829	7,249,031
Unquoted debt securities	7,000,000	5,000,000
	13,948,829	12,249,031

 

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

	2022	2021
	AED	AED
Investments carried at FVTOCI
Fair value at 1 January	51,296,714	49,164,336
Disposals	(21,732,807)	(7,892,582)
Change in fair value	(391,440)
Additions	11,330,115	–
Fair value at 31 December	40,502,582	51,296,714
Investments carried at FVTPL
Fair value at 1 January	12,249,031	10,554,455
Purchases	10,119,102	3,152,212
Disposals	(9,323,263)	(2,133,023)
Change in fair value taken to profit and loss	903,959	675,387
Fair value at 31 December	13,948,829	12,249,031

 

The geographical distribution of investments is as follows:

 

	2022	2021
	AED	AED
Quoted UAE equity securities	36,674,355	46,841,483
Quoted outside UAE debt securities	1,115,289	3,011,000
Unquoted UAE debt securities	13,950,000	11,950,000
Quoted outside UAE equity securities Quoted UAE debts securities	1,271,829 1,439,938	1,743,262 –
	54,451,411	63,545,745

 

 

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 2022
Investments at FVTOCI
Investment in quoted securities	(a)	30,997,354	–	–	30,997,354
Quoted Tier 1 perpetual securities		2,555,228			2,555,228
Unquoted Tier 1 perpetual securities		–	–	6,950,000	6,950,000
		33,552,582	–	6,950,000	40,502,582
Investments at FVTPL
Investment in quoted equity securities	(a)	6,948,829	–	–	6,948,829
Unquoted Tier 1 perpetual securities		–	–	7,000,000	7,000,000
		6,948,829	–	7,000,000	13,948,829
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

 

• 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.