IFRScommunity.com

Hi,

I have 2 questions related to disclosure in hedge funds:

For investment in hedge fund, should it be disclosed as "investment in equity securities" or or "investment in non-equities" securities".

Should the investment in hedge fund be disclosed interest level 2 or level 3 fair value measurement?

Thanks.

Strictly speaking interest held in most investment funds are not equity instruments (IFRS 9 BC5.21) - the issuer has a contractual obligation to deliver cash (unless it's not the case in your scenario?). So I there were only those two options available, I think that non-equity is the correct answer. But it's your choice to use appropriate labels in the SoFP, perhaps you could add another one 'Investment in hedge funds'

Fair value hierarchy depends on the inputs that you use when measuring the fair value and is specific to your investment:
https://ifrscommunity.com/knowledge-bas ... hierarchy/

How do you measure the fair value of your investment?

Maybe also have a look at this :

viewtopic.php?f=4&t=883&sid=40e6a5f4d31 ... 350346d119

I would say, equity and level 1 if it's listed ?

Our investment is non-listed. Our fair value measurement is based on the monthly valuation report from our fund manager.

where does the fund manager get info? sometimes these things are continually traded, albeit privately, so you have market prices effectively.