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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Thousands of US dollars)
34. Retirement benefit plans
(continued)
35. Related party
transactions and
balances
69
Dar Al-Maal Al-Islami Trust
Annual Report 2011
Expected contributions to post employment benefit plans for the year ending
31 December 2012 $1.5 million (2011 is $1.5 million).
As at 31 December
2011
2010
Present value of defined benefit obligation
71,569
70,098
Fair value of plan assets
61,691
66,712
(Surplus)/deficit
9,878
3,386
Experience adjustments on plan assets
328
(1,583)
Experience adjustments on plan liabilities
812
2,298
Plan assets invested in real estate currently
used by a subsidiary of the Group
13,985
13,932
Related parties include equity participation holders, directors, associated
companies and other companies, whose ownership and management is
common with DMI or its subsidiaries and associates. A number of transactions
are entered into with related parties in the normal course of business. These
include loans, current and investment accounts. Transactions and balances
disclosed as with associated companies are those with companies in which the
Bank owns 20% to 50% of the voting rights and over which it exerts significant
influence, but does not have control. The volumes of related party transactions,
outstanding balances at the year end, and relating income and expense for the
year are as follows.
a) Loans to key management personnel
2011
2010
Loans
Loans outstanding at 1 January
1,014
-
Conversion of an associate
to a subsidiary
-
945
Loans issued during the year
1,667
1,983
Loan repayments during the year
(588)
(1,948)
Foreign exchange
(28)
34
Loans outstanding at 31 December
2,065
1,014
No provisions were recognised in respect of loans given to related parties
(2010: $Nil).
Loans advanced to key management personnel bear no return and are
unsecured.
b) Loans to employees
All employees of the Group are entitled to receive employee loans on favourable
terms not equivalent to those of transactions made on an arm’s length basis.
Included in accounts receivable are amounts due from employees at
31 December 2011 of $35.7 million (2010: $43.2 million).