NOTES TO F I NANC I AL STATEMENTS For financial instruments where there is not an active market, the fair value is determined by using valuation techniques. Such techniques include using recent arm’s length transactions, reference to the current market value of another instrument which is substantially the same and/ or discounted cash flow analysis. For discounted cash flow techniques, estimated future cash flows are based on management’s best estimates and the discount rate used is a market related rate for a similar instrument. Class C Members’ Returnable Capital is recognised in financial liabilities. These debt contributions from the two current Class C Members are interest free loans, based on the characteristics described in the ‘Class C Membership and Capital Contribution Agreement’ (“CCA”) and the Company Bye-Laws. In accordance with IAS 32, these contributions are more in the nature of debt rather than equity and thus have been recognised in financial liabilities. These zero-interest rate loans have been provided by the two donor entities, FCDO and KfW, with the requirement that in 20 years or earlier, in accordance with the executed CCA, these loans will be repaid at initial par value. The fair values of these financial liabilities were determined through discounted cash flow analysis, using a discount rate of 2%. This 2% discount rate is based on the interest rate plus service charge applied to 20-year loans (25year maturity but with 5 year grace period) made by the International Development Association (“IDA”) under ‘Blend’ terms effective July 1, 2016. IDA is the part of the World Bank Group which provides development finance to the poorer countries of the world. In addition, the GBP denominated FCDO loan has been revalued for reporting purposes using the closing rate, as described in note 4.6. Short-term financial assets comprise cash and cash equivalents and marketable investments. The carrying value of these is a reasonable estimate of their fair value as determined by independent third-party financial institutions. 6. FIXED ASSETS Figures in USD 31 DEC 2023 31 DEC 2022 Opening balance 203,818 178,981 Cost of additions 17,838 41,742 Depreciation charge (16,203)) (16,905) Net book value 205,453 203,818 The net book value consists of computers and computer equipment of $23,089 (2022: $14,301), software of $181,385 (2022: $187,695) and office furniture of $979 (2022: $1,822). 105
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