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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
awards. Applicable to annual
periods beginning on or after 1 July
2010. Applied prospectively.
Annual improvement 2010 to
IFRS 7, ‘Financial instruments’ –
Emphasises the interaction between
quantitative
and
qualitative
disclosures about the nature and
extent of risks associated with
financial instruments. Effective
date 1 January 2011. Applied
retrospectively.
Amendment to IFRIC 14, ‘IAS19 –
The limit on defined benefit assets,
minimum funding requirements
and their interaction’ – Removes
unintended consequences arising
from the treatment of pre-payments
where there is a minimum funding
requirement. Results in pre-
payments of contributions in certain
circumstances being recognised as
an asset rather than an expense.
Effective date 1 January 2011.
IFRIC 19 – ‘Extinguishing financial
liabilities with equity instruments’ –
Clarifies the requirements of IFRSs
when an entity renegotiates the
terms of a financial liability with its
creditor and the creditor agrees to
accept the entity’s shares or other
equity instruments to settle the
financial liability fully or partially.
Effective date 1 July 2010.
New and amended
standards, and
interpretations mandatory
for the first time for
the financial year beginning
1 January 2011
but not currently relevant
to the Group
(although they may affect
the accounting for future
transactions and events)
Annual improvement 2010 to IAS
34, ‘Interim financial reporting’ –
Provide guidance to illustrate how to
apply disclosure principles in IAS
34 and add disclosure requirements
around:
The circumstances likely to affect
fair values of financial instruments
and their classification;
•
Transfers of financial
instruments between different
levels of the fair value
hierarchy;
•
Changes in classification of
financial assets; and
•
Changes in contingent
liabilities and assets.
Effective date 1 January 2011.
Applied retrospectively.
Annual improvement 2010 to IFRIC
13, ‘Customer loyalty programmes’
– The meaning of ‘fair value’ is
clarified in the context of measuring
award credits under customer
loyalty programmes. Effective date
1 January 2011.
New standards,
amendments and
interpretations issued
but not effective
for the financial year
beginning 1 January 2011
and not early adopted.
There are no IFRS or IFRIC
interpretations that were issued but
not effective for the financial year
beginning 1 January 2011 and
not early adopted that would be
expected to have a material impact
on the Group, unless otherwise
mentioned below.
Amendment to IAS 1, ‘Financial
statement presentation’ regarding
other comprehensive income – The
main change resulting from these
amendments is a requirement for
entities to group items presented in
‘other comprehensive income’ on
the basis of whether they are
potentially reclassifiable to profit or
loss subsequently (reclassification
adjustments). The amendments do not
address which items are presented
in the ‘other comprehensive income’.
Effective date 1 July 2012.
Amendment to IAS 12, ‘Income
taxes’ on deferred tax – IAS 12,
‘Income taxes’ currently requires an
entity to measure the deferred tax
relating to an asset depending on
whether the entity expects to recover
the carrying amount of the asset
through use or sale. It can be
difficult and subjective to assess
whether recovery will be through
use or through sale when the
asset is measured using the fair
value model in IAS 40, ‘Investment
property’. This amendment therefore
introduces an exception to
the existing principle for the
measurement of deferred tax assets
or liabilities arising on investment
property measured at fair value. As
a result of the amendments,
SIC 21, ‘Income taxes – recovery of
revalued non-depreciable assets’,
will no longer apply to investment
properties carried at fair value. The
amendments also incorporate into
IAS 12 the remaining guidance
previously contained in SIC 21,
which is withdrawn. Effective date
1 January 2012.
Amendment to IAS 19, ‘Employee
benefits’ – These amendments
eliminate the corridor approach
and calculate finance costs on a
net funding basis. Effective date
1 January 2013. The impact on the
2013 Group accounts is estimated
to increase the pension liability
through equity by the amount
of unrecognised actuarial losses
which amounted to $6.5 million at
31 December 2011.
IAS 27 (revised 2011), ‘Separate
financial statements’ – This standard
includes the provisions on separate
financial statements that are left after
the control provisions of IAS 27
have been included in the new IFRS
10. Effective date 1 January 2013.
IAS 28 (revised 2011), ‘Associates
and joint ventures’ – This standard
includes the requirements for joint
ventures, as well as associates,
to be equity accounted following
the issue of IFRS 11. Effective date
1 January 2013.
IAS 32 (amended) and IFRS 7
(amended), “Financial instruments”
– The amendments clarify the
requirements for offsetting financial
instruments and implement new
disclosures to facilitate the
comparison between IFRS and US
GAAP.
Amendment to IFRS 1, ‘Severe
hyperinflation and removal of fixed
dates for first-time adopters – The
amendment provides guidance on
how an entity should resume
presenting financial statements in
accordance with IFRSs after a period
when the entity was unable to
comply with IFRSs because its
functional currency was subject to
sever hyperinflation. Effective date
1 July 2011.
19
Dar Al-Maal Al-Islami Trust
Annual Report 2011