DMI Trust Annual Report 2012 - page 12

10 Dar Al-Maal Al-Islami Trust
Annual Report 2012
Page
Independent auditors’ report 11
Consolidated statement
of financial position 12
Consolidated statement
of income 13
Consolidated statement
of comprehensive income 14
Consolidated Statement
of changes in Equity 15
Consolidated Statement
of Cash Flows 16
Notes to the Consolidated Financial
Statements
1. Formation and activities 18
2. Accounting policies 18
Basis of preparation 18
Impact of new accounting
pronouncements
New and amended
standards adopted 18
New and amended standards
and interpretations 18
Consolidation 20
Foreign currency
translation 21
Derivative financial
instruments and hedging 21
Income from investments with
Islamic institutions and
investments in financings 21
Fee and commission
income 22
Distribution to Massaref
account holders 22
Sale and repurchase
agreements 22
Financial assets 22
Impairment of financial
assets 23
Impairment of non financial
assets 24
Investments with Islamic
institutions 24
Intangible assets 24
Investment property 25
Property, plant and
equipment
and depreciation 25
Leases 25
Provisions 25
Non-current asset held
for sale 26
Page
Discontinued operations 26
Due to banks and financial
institutions 26
Borrowings 26
Retirement benefit plans 26
Taxation 27
Deferred income taxes 27
Trust capital and treasury
stock 27
Acceptances 27
Cash and cash equivalents 27
Fiduciary activities 27
3. Critical accounting
estimates and judgements
in applying accounting
policies 27
Impairment of investments
in financings 27
Fair value and impairment
of available-for-sale
equity investments 28
Fair value of investment
properties 28
Special purpose entities 28
Income taxes 28
Impairment of associated
companies 28
Estimated impairment
of goodwill 28
Pension obligation 29
4. Financial instruments 30
Strategy in using
financial instruments 30
Capital management 31
Financial risk
management 31
Credit risk 31
Market risk 35
Liquidity risk 38
5. Cash and cash
equivalents 42
6. Trading securities 42
7. Investments in financings 43
8. Collateral received and
re-pledged 44
9. Allowance account
from credit losses 44
10. Investment securities 45
Page
11. Fair value of financial
instruments 47
12. Accounts receivable 51
13. Investment property 51
14. Investments in associates 52
15. Property, plant and
equipment 56
16. Intangible assets 57
17. Non-current assets and
liabilities and
discontinued operations 58
18. Accounts payable 59
19. Tax liability 59
20. Massaref accounts 60
21. Provisions 60
22. Collateralised borrowings 61
23. Net trading income 61
24. Income from investments
in financings 61
25. Fee and commission
income 61
26. Dividend income 62
27. Other income 62
28. Staff costs 62
29. General and administrative
expenses 62
30. Proposed dividend 62
31. Taxes 62
32. Non-controlling interests 63
33. Funds under management 64
34. Retirement benefit plans 64
35. Related party transactions
and balances 66
36. Contingent liabilities
and commitments 68
37. Current and non current
assets and liabilities 70
38. Concentration of
assets and liabilities 71
39. Maturities of assets and
liabilities 73
40. Currency exposure 74
41. Trust capital 75
42. Comparatives 75
43. Date of authorization
for issue 75
44. Principal subsidiaries 75
INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS