2011 Annual Report - Khaleeji Commercial Bank BSC

KHALEEJI COMMERCIAL BANK BSC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2011
BD 000’s
30. FAIR VALUE
a) Fair value of financial instruments
Fair value is an amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties
in an arm’s length transaction.
The fair values of quoted Sukuk carried at amortised cost of BD 8,209 thousand (2010: BD 10,240 thousand) amounts to
BD 7,899 thousand as at 31 December 2011 (2010: BD 9,076 thousand).
Other than equity investments carried at cost of BD 72,741 thousand (2010: BD 69,648 thousand), the estimated fair values
of the Bank’s other financial instruments are not significantly different from their carrying values.
b) Fair value hierarchy
The table below analyses the financial instruments carried at fair value, by valuation method. The different levels have been
defined as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.
• Level 2: 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).
• Level 3 : inputs for the asset or liability that are not based on observable market data (unobservable inputs).
31 December 2011 level 1 Level 2 Level 3 Total
Investment securities
Equity type instruments carried at fair value through income statement - - 17,452 17,452
Equity type instruments carried at fair value through equity 211 - - 211
211 - 17,452 17,663
31 December 2010 Level 1 Level 2 Level 3 Total
Investment securities
Equity type instruments carried at fair value through income statement - - 12,796 12,796
Equity type instruments carried at fair value through equity 274 - - 274
274 - 12,796 13,070
The table below shows the reconciliation of movements in value of investments measured using Level 3 inputs:
2011 2010
At 1 January 12,796 -
Total gains or losses:
- In profit or loss 4,656 -
Purchases - 12,796
At 31 December 17,452 12,796
Consolidated Financial Statements
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