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while classified as held for sale or
while part of a disposal group held
for sale.
The Group separately classifies the
material non-current assets held for
sale (or disposal group) in the
consolidated statement of financial
position. Furthermore, all major
classes of assets and liabilities are
disclosed. Any cumulative income
or expense is disclosed as a
separate item within equity. Prior
period amounts are not re-presented
to reflect the classification of the
assets (or disposal group) in the
current period.
Non-current assets, which are to be
abandoned, are not classified as
held for sale and are reclassified as
discontinued operations, to the
extent they meet the requirements
of discontinued operations in the
paragraph which follows.
If a non-current asset (or disposal
group) ceases to be classified as
held for sale or as discontinued
operations, the results of operations
are reclassified and included in the
consolidated statement of income
from continuing operations for all
periods presented.
Discontinued Operations
A discontinued operation is a
component (cash generating unit)
of an entity that either has been
disposed of or is classified as held
for sale and a) represents a major
business line or geographical area
of operations; b) is part of a single
coordinated plan to dispose of a
separate major business line or
geographical area of operations;
or c) is a subsidiary acquired
exclusively with a view to resell.
The Group presents after tax results
from discontinued operations as a
single separate component of the
statement of income. Revenues,
expenses, taxes, gains or losses on
the measurement to fair value less
costs to sell and cash flows are
additionally disclosed. Prior periods
are reclassified in order to present
all operations that have been
discontinued by the statement of
financial position date of the latest
period presented.
Due to banks and financial
institutions
Due to banks and financial institutions
are initially recorded at fair value and
subsequently measure at amortised
cost using the effective return method.
Borrowings
Borrowings are recognised initially
at fair value net of transaction
costs incurred. Borrowings are
subsequently stated at amortised
cost; any difference between
proceeds net of transaction costs
and the redemption value is
recognised in the consolidated
statement of income over the period
of the borrowings using the effective
return method.
Retirement benefit plans
The Group operates a number
of defined benefit and defined
contribution
pension
plans
throughout the world, the assets
of which are generally held
in separate trustee-administered
funds. The pension plans are
generally funded by payments from
employees and by the relevant
Group companies, taking into
account the recommendations of
independent qualified actuaries.
For defined benefit plans, the
pension accounting costs are
assessed using the projected unit
credit method. Under this method,
the cost of providing pensions
is charged to the consolidated
statement of income so as to spread
the regular cost over the service
lives of employees in accordance
with the advice of qualified actuaries
who carry out a valuation of the
plans every year. The pension
obligation is measured as the
present value of the estimated future
cash outflows using high standard
corporate bond rates which have
terms to maturity approximating the
terms of the related liability.
Actuarial gains and losses arising
from experience adjustments, and
changes in actuarial assumptions,
in excess of the greater of 10% of
the value of plan assets or 10% of
the defined benefit obligation, are
charged or credited to income over
the employees’ expected average
remaining working lives.
The Group’s contributions to
defined contribution pension plans
are charged in the consolidated
statement of income in the year to
which they relate.
Taxation
Taxes are provided and charged
in the consolidated statement
of income on the basis of the
estimated tax expense payable
currently and in future years, arising
in respect of the results of current
operations.
The current income tax charge is
calculated on the basis of tax laws
enacted or substantially enacted at
the date of the statement of financial
position in the countries where the
Group’s subsidiaries and associates
operate.
Deferred income taxes
Deferred income tax is provided,
using the comprehensive liability
method, for all temporary differences
arising between the tax bases of
assets and liabilities and their
respective carrying values for
financial reporting purposes. The
amount of deferred taxes on these
differences is determined using
the provisions of local tax laws,
including rates, and is adjusted
upon enactment of changes in
these laws. Provision is made for
potential taxes which could arise on
the remittance of retained overseas
earnings where there is a current
intention to remit such earnings.
A deferred tax asset is recognised
for all deductible temporary
differences and carry forward of
unused tax losses and tax credits to
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
27
Dar Al-Maal Al-Islami Trust
Annual Report 2011