Page 83 - ICD-AR22-English

Notes to the Separate Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2022
Listed investments measured at fair value members’ equity
Initially and subsequently such investments are measured at fair market value, and any unrealized gains
or losses arising from the change in their fair values are recognized directly in the fair value reserve under members’ equity until the investment is derecognized or considered impaired, at which time the cumulative gain or loss previously recorded under the members’ equity is recognized in the separate income statement to the extent of impairment.
Unlisted investments in equities and funds measured at fair value through equity
Unlisted investments in equities carried at fair values determined by independent valuers. Fair value gains/ losses are reported in fair value reserve in equity. If there is objective evidence that an impairment loss has been incurred, the amount of impairment is measured as the difference between the carrying amount of investment and its expected recoverable amount. Impairment losses recognized in separate income statement are reversed through statement of changes in members’ equity. After the initial designation, the Corporation shall not reclassify investments in equity-type securities into or out of the fair value through its statement of changes in members' equity category.
All other investments (excluding investments carried at fair value through separate income statement) are assessed for impairment in accordance with the impairment approach.
Impairment loss represents the amount by which an investment’s carrying value exceeds its recoverable amount. In case of indications of possible impairment, the recoverable amount of an investment is determined as being the higher of its fair value less costs of disposal and its value-in-use. Impairment losses are recognised in the separate income statement.
iv) Sukuk investments
Sukuk are certificates of equal value representing undivided share in ownership of tangible assets, usufructs, services or (in the ownership) of assets of a particular project, measured at amortised costs or fair value through equity.
Sukuk Investments carried at fair value through changes in members’ equity
An investment will be measured at fair value through changes in members’equity if both the following conditions are met:
• the investment is held within a business model whose objective is achieved by both collecting the expected cashflows and selling the investments; and
• the investment represents a non monetary debt type instrument or other investment instrument having reasonably determinable effective yield.
REINVIGORATING THE PRIVATE SECTOR TO SHAPE A BETTER FUTURE 81