Annual report pursuant to Section 13 and 15(d)

6. Trading and Available-For-Sale Securities at Fair Value

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6. Trading and Available-For-Sale Securities at Fair Value
12 Months Ended
Mar. 31, 2018
Trading Securities [Abstract]  
Trading and Available-For-Sale Securities at Fair Value

As of March 31, 2018, and March 31, 2017, trading securities consisted of:

 

   

March 31,

2018

   

March 31,

2017 (Recast)

 
             
Equity securities   $ 177,063     $ 71,697  
Debt securities     34,986       9,877  
Mutual investment funds     270       1  
Total trading securities   $ 212,319     $ 81,575  
                 
Equity securities   $ 2     $ 2  
Total available- for-sale securities, at fair value   $ 2     $ 2  

 

The Company recognized no other than temporary impairment in accumulated other comprehensive income.

 

The fair value of assets and liabilities is determined using observable market data based on recent trading activity. Where observable market data is unavailable due to a lack of trading activity, the Company utilizes internally developed models to estimate fair value and independent third parties to validate assumptions, when appropriate. Estimating fair value requires significant management judgment, including benchmarking to similar instruments with observable market data and applying appropriate discounts that reflect differences between the securities that the Company is valuing and the selected benchmark. Depending on the type of securities owned by the Company, other valuation methodologies may be required.

 

Measurement of fair value is classified within a hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

 

The valuation hierarchy contains three levels:

 

Level 1 - Valuation inputs are unadjusted quoted market prices for identical assets or liabilities in active markets.

 

Level 2 - Valuation inputs are quoted market prices for identical assets or liabilities in markets that are not active, quoted market prices for similar assets and liabilities in active markets, and other observable inputs directly or indirectly related to the asset or liability being measured.

 

Level 3 - Valuation inputs are unobservable and significant to the fair value measurement.

 

The following tables present trading securities assets in the Consolidated Financial Statements or disclosed in the Notes to the Consolidated Financial Statements at fair value on a recurring basis as of March 31, 2018 and March 31, 2017:

 

          Fair Value Measurements at  
          March 31, 2018 using  
          Quoted Prices in Active Markets for Identical Assets     Significant Other Observable Inputs     Significant unobservable units  
    March 31, 2018     (Level 1)     (Level 2)     (Level 3)  
                         
Equity securities   $ 177,063     $ 177,063     $ -     $ -  
Debt securities     34,986       34,986       -       -  
Mutual investment funds     270       270       -       -  
Total trading securities   $ 212,319     $ 212,319     $ -     $ -  

  

          Fair Value Measurements at  
          March 31, 2017 (recast) using  
          Quoted Prices in Active Markets for Identical Assets     Significant Other Observable Inputs     Significant unobservable units  
    March 31, 2017 (Recast)     (Level 1)     (Level 2)     (Level 3)  
                         
Equity securities   $ 71,697     $ 71,697     $ -     $ -  
Debt securities     9,877       9,663       214       -  
Mutual investment funds     1       1       -       -  
Total trading securities   $ 81,575     $ 81,361     $ 214     $ -  
                                 

 

        March 31, 2018      
    Assets measured at amortized cost     Unrealized gain accumulated in other comprehensive income     Assets measured at fair value  
                   
Equity securities   $ 1     $ 1     $ 2  
                         
Available-for-sale securities, at fair value   $ 1     $ 1     $ 2  

 

        March 31, 2017 (Recast)      
    Assets measured at amortized cost     Unrealized gain accumulated in other comprehensive income     Assets measured at fair value  
       
Equity securities   $ 1     $ 1     $ 2  
                         
Available-for-sale securities, at fair value   $ 1     $ 1     $ 2  

 

As of March 31, 2018, approximately $105,000 worth of the Company’s our proprietary trading account was invested in the securities of a single company. This represents approximately 49% of the Company’s proprietary portfolio.