The investments disclosed will include the following:
We disclose an investment on our website if its fair value is at least $1,000,000 and we have previously publicly disclosed it in a regulatory filing (such as an “early warning report”), it represents a partially diluted ownership interest of at least 5%, or it is one of our top five investments (by fair value) in its sector. Click here for a description of our investment sectors.
At each financial reporting period, the Company’s management estimates the Fair Value of investments based on the criteria below:
(i) Publicly-traded investments:
(ii) Privately-held investments:
All privately-held investments (other than options and warrants) are initially recorded at the transaction price, being the fair value at the time of acquisition. Thereafter, at each reporting period, the fair value of an investment may (depending upon the circumstances) be adjusted using one or more of the valuation indicators described below. Options and warrants of private companies are carried at their intrinsic value.
The determinations of fair value of the Company’s privately-held investments at other than initial cost are subject to certain limitations. Financial information for private companies in which the Company has investments may not be available and, even if available, that information may be limited and/or unreliable. Use of the valuation approach described below may involve uncertainties and determinations based on the Company’s judgment and any value estimated from these techniques may not be realized or realizable.
Company-specific information is considered when determining whether the fair value of a privately-held investment should be adjusted upward or downward at the end of each reporting period. In addition to company-specific information, the Company will take into account trends in general market conditions and the share performance of comparable publicly-traded companies when valuing privately-held investments. The absence of the occurrence of any of these events, any significant change in trends in general market conditions, or any significant change in share performance of comparable publicly-traded companies indicates generally that the fair value of the investment has not materially changed.
The fair value of a privately-held investment may be adjusted if:
Adjustments to the fair value of a privately-held investment will be based upon management’s judgment and any value estimated may not be realized or realizable. The resulting values for non-publicly traded investments may differ from values that would be realized if a ready market existed.
(iii) Investments in associates:
Investments in associates are those entities over which the Company has or is deemed to have significant influence but not control over, the financial and operating policies. Investments in associates are held as part of the Company’s investments portfolio and carried in the consolidated statement of financial position at fair value even though the Company may have significant influence over the companies. This treatment is permitted by International Accounting Standards (“IAS”) 28 Investment in Associates, which allows investments held by venture capital or similar organizations to be excluded from its scope where those investments are designated, upon initial recognition, as at fair value through profit or loss and subsequently they are accounted for in accordance with IFRS 9, with changes in fair value recognized in the consolidated statement of comprehensive income (loss) within unrealized gains or losses on investments.
(iv) Other investment instruments:
Included in Pinetree’s investments may be certain instruments that are accounted for as follows:
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