Page 27 - Finac1 Test 2 slides - 1. Fair Value Measurement (IFRS 13)

IFRS 13

Elements of fair value measurement

Listed investments

• On 31 December 20.13 Serviplex's listed investments consisting of
equity investments had a total net market value of R5 247 000 after
brokerage fees of 1% was deducted. These investments are traded in an
active market. The fair value of these investments was R5 020 000 at 31
December 20.12. These investments were classified as measured at fair
value through profit or loss.

Unlisted investments

• Serviplex obtained a 10% interest in Anfield Ltd on 3 February 20.12 for
R3 042 000. The fair value and carrying amount of the investment were
R3 100 000 at 31 December 20.12. On 31 December 20.13 the
accountant of Serviplex calculated the fair value of the investment in
Anfield Ltd by using a significantly adjusted after tax earnings yield of
18% and sustainable before tax earnings of R802 000 as input variables
in the measurement calculations. The tax rate is 28%. This investment
was classified as measured at fair value through other comprehensive

income.

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