More accounting tricks here to hide NSE losses.

But in the end... only market sentiment matters and all Wanjiku has heard is that profits are up!

The results appear to be supported by the 4.3bn gain from reduced insurance commissions/claims

Profit and Loss
–15% Investment income: for-sale financial assets, equities, trading positions
–30% Associates share of profit: IPS/Bujagali/Seacom

Comprehensive income
–166% Not for sale quoted equities/investment properties/unquoted shares, currency translation effect

@vvs, not tricks that I can trace. I was only quoting @guru on her comments from KRe thread .

Anyway this is what I Know about Financial Instruments: Recognition and Measurement, IAS 39 (and will be largely replaced by IFRS 9 Financial Instruments for annual periods beginning on or after 1 January 2018.)

However Jubilee opted for an earlier adoption of IFRS 9 (Refer to Page 75; Points 37.71)





Classification of financial assets

IFRS 9 divides all financial assets that are currently in the scope of IAS 39 into two classifications - those measured at amortised cost and those measured at fair value.

Where assets are measured at fair value, gains and losses are either recognised entirely in profit or loss (fair value through profit or loss, FVTPL), or recognised in other comprehensive income (fair value through other comprehensive income, FVTOCI)

The classification of a financial asset is made at the time it is initially recognised, namely when the entity becomes a party to the contractual provisions of the instrument. [IFRS 9, paragraph 4.1.1] If certain conditions are met, the classification of an asset may subsequently need to be reclassified.

Fair value option
Even if an instrument meets the two requirements to be measured at amortised cost or FVTOCI, IFRS 9 contains an option to designate, at initial recognition, a financial asset as measured at FVTPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as a 'accounting mismatch'){added-not accounting trick } that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases. [IFRS 9, paragraph 4.1.5]

'Other comprehensive income' option
If an equity investment is not held for trading, an entity can make an irrevocable election at initial recognition to measure it at FVTOCI with only dividend income recognised in profit or loss. [IFRS 9, paragraph 5.7.5]

For Jubilee reading 2014 financial report, I note that;
1)1.2B was passed through income statement "Net fair value gains on financial assets at fair value through profit or loss";(read also notes 18 and 19 to see that out of this amount ..)
2) 225M was passed through comprehensive income as "Net fair value gains on financial assets"

Then this is the summary of Jubilee's option under IFRS 9;




My 2 cents.

The tougher state of affairs at:

Jubilee Insurance Kenya for 2015
(not the group holding company)

In fairness though, the share of positions held regarded as tradeable (and thus in the P&L) would be relatively small. Jubilee stays for aeons on the top 10 lists of the companies it has an interest.

Further for P&L, other income which includes investment income
Variance
Loss FY 2015 -1.2bn
Gain FY 2014 +1.2bn
Gain FY 2013 +0.5bn
Gain FY 2012 +1.7bn
Loss FY 2011 -0.5bn

Trick, perception, FVTPL, FVTOCI - all doesn't matter after the humongous dividend hit my account yesterday.