The Edinburgh Investment Trust Plc Annual Financial Report 2022 - Flipbook - Page 75
THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 73
17. FAIR VALUE
The values of the financial assets and financial liabilities are carried either at their fair value (investments), or at a reasonable
approximation of fair value (amounts due from brokers, dividends receivable, accrued income, amounts due to brokers, accruals,
cash and any drawings on the bank facility) or at amortised cost (debenture).
Fair Value Hierarchy Disclosures
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.
2022
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
1,218,419
–
–
–
1,218,419
–
306
306
1,218,419
–
306
1,218,725
Level 3
£’000
Total
£’000
Financial assets designated at fair value through profit or loss:
Quoted investments:
Equities and preference shares
Unquoted and suspended investments
Total for financial assets
2021
Level 1
£’000
Level 2
£’000
1,150,903
–
–
1,150,903
–
–
105
105
1,150,903
–
105
1,151,008
Financial assets designated at fair value through profit or loss:
Quoted investments:
Equities and preference shares
Unquoted investments
Total for financial assets
The valuation techniques used by the Company are explained in the accounting policies note. At the end of the financial year there
were no Level 2 investments. There were two investments in Level 3 at the year end (2021: one investment) totalling £306,000 (2021:
£105,000).
The holding in Eurovestech did not change during the year, but the fair value was £69,000 (2021: £105,000).
Raven Property is the other unquoted investment. Their issued preference shares were suspended on 2 March 2022 due to sanctions on
the company's Russian businesses. At the date of suspension the quoted price was 20p share, however the Directors' revalued the shares
to 10p per share resulting in a fair value of £237,000. On 17 March 2022 Raven Property announced their intention to de-list their issued
ordinary and preference shares, a process which is still underway.