INNSUITES HOSPITALITY TRUST Fair Value Disclosure
20. FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table presents the estimated fair values of the Trust’s debt instruments, based on rates currently available to the Trust for bank loans with similar terms and average maturities, and the associated carrying value recognized in the consolidated balance sheets at January 31, 2025 and 2024:
| 2025 | 2024 | |||||||||||||||
| Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
| Mortgage Notes Payable | $ | 9,044,446 | $ | 2,526,695 | $ | 9,250,585 | $ | 2,833,263 | ||||||||
| Other Notes Payable | $ | 470,000 | $ | 470,000 | $ | 470,000 | $ | 470,000 | ||||||||
| Notes Payable - Related Party | $ | 1,151,225 | $ | 1,151,225 | $ | $ | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | May 1, 2025 | Showing above |
| 2024 | Apr 8, 2024 | |
| 2023 | May 2, 2023 | |
| 2022 | May 27, 2022 | |
| 2021 | May 17, 2021 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.