Edinburgh Investment Trust Half Yearly Report - Flipbook - Page 25
THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 23
7. CLASSIFICATION UNDER FAIR VALUE HIERARCHY
All except two of the Company’s portfolio of investments are in the Level 1 category as defined in FRS 102 as amended for fair
value hierarchy disclosures (March 16). The three levels set out in this follow.
Level 1 - The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the
measurement date.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the
asset or liability, either directly or indirectly.
Level 3 - Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
Categorisation within the hierarchy is determined on the basis of the lowest level input that is significant to the fair value
measurement of each relevant asset/liability. The valuation techniques used by the Company are explained in the accounting
policies note.
The fair value hierarchy analysis for investments and related forward currency contracts held at fair value at the period end is
as follows:
30 September
2023
(Unaudited)
£’000
31 March
2023
(Audited)
£’000
1,217,434
1,226,649
Financial assets designated at fair value through profit or loss:
Level 1
Level 3
Total for financial assets
–
–
1,217,434
1,226,649
There were two investments in Level 3 at the period end (31 March 2023: two investments) totalling £nil (31 March 2023: £nil).
There was no change to the position size or fair value for either holding.
8. NET ASSET VALUE PER ORDINARY SHARE
Refer to Alternative Performance Measures for definitions of NAV – debt at par and NAV – debt at fair value.
NAV - debt at par
The shareholders’ funds and NAV per share in the Condensed Balance Sheet on page 19 are accounted for in accordance
with accounting standards. The Unsecured Senior Loan Notes were issued at and being recorded at their par value of £120m.
A reconciliation showing the NAV per share and Shareholders’ funds using debt at fair value is shown in the Alternative
Performance Measures on page 29.