HERALD INVESTMENT TRUST plc ANNUAL REPORT ...

NOTES TO THE FINANCIAL STATEMENTS continued
21. Financial instruments (continued)
A reconciliation of fair value measurements in Level 3 is set out below:
At 31 December 2010
Equity Investments
£’000
Opening balance at 1 January 2010 2,949
Purchases 1,639
Sales –
Transfers into Level 3 1,578
Total gains or losses:
– on assets sold during the year –
– on assets held at 31 December 2010 (2,266)
Closing balance at 31 December 2010 3,900
Transfers into Level 3 relate to investments for which listing has been suspended during the year.
At 31 December 2009
Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Financial assets
Equity investments 351,319 162 2,949 354,430
Government debt securities 20,916 – – 20,916
Other debt securities 5,111 – – 5,111
Current assets 20,144 – – 20,144
Total assets 397,490 162 2,949 400,601
Financial liabilities
Bank loans 50,000 – – 50,000
Derivatives – 6,298 – 6,298
Current liabilities (excluding bank loans) 3,407 – – 3,407
Total liabilities 53,407 6,298 – 59,705
Total net assets 344,083 (6,136) 2,949 340,896
A reconciliation of fair value measurements in Level 3 is set out below:
At 31 December 2009
Equity Investments
£’000
Opening balance at 1 January 2009 2,898
Purchases 815
Sales (1,738)
Transfers into Level 3 1,607
Total gains or losses:
– on assets sold during the year (1,639)
– on assets held at 31 December 2009 1,006
Closing balance at 31 December 2009 2,949
Transfers into Level 3 relate to investments for which listing has been suspended during the year.
HERALD INVESTMENT TRUST plc 53