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KUWAIT ENERGY PLC
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
Six months ended 30 June 2015
21
16.
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Financial instruments comprise of financial assets and financial
liabilities.
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices that are observable for assets or liabilities either directly (as prices) or
indirectly (derived from prices); and
Level 3: inputs for assets or liabilities that are not based on observable market data.
Fair value measurement hierarchy for financial assets and financial liabilities that are carried at fair value is as follows:
30 June 2015
Level 1
Level 2
Level 3
Total
USD 000’s
USD 000’s
USD 000’s
USD 000’s
Financial liabilities measured at fair value
Financial liabilities at fair value
through profit and loss account (FVTPL):
- Convertible loans
-
-
122,969
122,969
31 December 2014
Financial assets measured at fair value
Financial liabilities at fair value
through profit and loss account (FVTPL):
- Convertible loans
-
-
117,829
117,829
There were no transfers between Level 1, Level 2 and Level 3 fair value measurements during the period.
The following table shows a reconciliation of all movements in the fair value of financial instruments categorised
within Level 3 between the beginning and the end of the reporting period.
2015
2014
Asset classified
as held for sale
(net)
Convertible
loans
Asset classified
as held for sale
(net)
Convertible
loans
USD 000’s
USD 000’s
USD 000’s
USD 000’s
Asset/(liability) at 1 January
-
(117,829)
15,000
(112,551)
Additions/repayment
-
4,654
2,339
8,469
Losses arising in the period/change
in fair value
-
(9,794)
(4,039)
(13,747)
Proceeds from disposal
-
-
(13,300)
-
Asset/(liability) at 30 June/
31 December
-
(122,969)
-
(117,829)
Total losses for the period included
in profit or loss for assets held at the
end of the reporting period
-
8,730*
4,039
9,931*
*Net of amounts capitalised within finance costs of USD 1,064 thousand (31 December 2014: USD 3,816 thousand)
(see note 13).