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79
Dar Al-Maal Al-Islami Trust
Annual Report 2011
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Thousands of US dollars)
42. Acquisitions
and disposals
(continued)
The details of the assets and liabilities acquired are as follows:
Acquirees’
Fair value
Fair value
carrying amount
adjustments/
as at
on 31 March 2010
intangibles
31 March 2010
recognised
Cash and cash
equivalents
487,334
-
487,334
Investments
10,666
-
10,666
Trading securities
40,215
-
40,215
Investments in financings 1,804,249
-
1,804,249
Investment securities
838,453
(7,000)
831,453
Investment property
401,056
13,768
414,824
Accounts receivable
217,299
-
217,299
Investments in associate
697,882
(1,678)
696,204
Property, plant and
equipment
105,391
(2,300)
103,091
Acquired goodwill
& intangibles
255,068
(506)
254,562
Customer related
intangible assets
-
8,120
8,120
Core deposit
intangible assets
-
5,680
5,680
Other assets
1,537
-
1,537
Massaref accounts
(3,415,216)
-
(3,415,216)
Accounts payable
(424,749)
-
(424,749)
Other liabilities
5,039
-
5,039
Total assets and
liabilities acquired
1,024,224
16,084
1,040,308
Non-controlling interests
(226,048)
-
(226,048)
Net identifiable assets
798,176
16,084
814,260
Intangibles acquired in the business combination
Following the purchase price allocation of Ithmaar Bank B.S.C., the following
intangible assets were recognised:
Customer relations
8,120
Core deposits
5,680
13,800
Non-controlling interests
(6,541)
Net intangible assets
7,259
The fair value of these identifiable intangible assets has been determined using
an income approach, by an independent valuer. The income approach begins
with an estimation of the annual cash flows, which a market participant
acquirer would expect the asset to generate over a discrete projection period.
The estimated cash flows for each of the years in the discrete projection period
are then converted to their present value equivalent using a rate of return
appropriate for the risk of achieving the assets’ projected cash flows. The
present value of the estimated cash flows are then added to the present value
equivalent of the residual value of the asset (if any) at the end of the discrete
projection period to arrive at an estimate of the fair value of the specific asset.