267694 EdinburghIT AR 2024 WEB - Flipbook - Page 77
THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 75
17. Classification Under Fair Value Hierarchy
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).
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.
2024
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Equities and preference shares
1,206,563
–
–
1,206,563
Total for financial assets
1,206,563
–
–
1,206,563
Financial assets designated at fair value through profit or loss:
Quoted investments:
2023
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Equities and preference shares
1,226,649
–
–
1,226,649
Total for financial assets
1,226,649
–
–
1,226,649
Financial assets designated at fair value through profit or loss:
Quoted investments:
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 (2023: no Level 2 investments). There were two Level 3 investments at the year end totaling
£nil (2023: two investments totalling: £nil).
The holding in Eurovestech did not change during the year and the fair value was unchanged at £nil (2023: £nil).
Raven Property is the other unquoted investment. Their issued preference shares were suspended in March 2022 due to
sanctions on the company’s Russian businesses. At the balance sheet date the shares remain de-listed and recorded a fair
value of £nil (2023: £nil).
