Notes to the Consolidated Financial Statements
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 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 $9.0 million at
31 December 2012 (2011: $6.5
million), whilst increasing the 2012
expense by $0.1 million.
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, ‘Financial instruments:
Presentation’ on asset and liability
offsetting – These amendments
are to the application guidance
in IAS 32, ‘Financial instruments:
Presentation’, and clarify some of the
requirements for offsetting financial
assets and financial liabilities on
the balance sheet. Effective date
1 January 2014.
IFRS 7, ‘Financial instruments:
Disclosures’ on asset and liability
offsetting – This amendment
includes new disclosures to
facilitate comparison between those
entities that prepare IFRS financial
statements to those that prepare
financial statements in accordance
with US GAAP. Effective date
1 January 2013.
IFRS 9, ‘Financial instruments’ – IFRS
9 is the first standard issued as part
of a wider project to replace IAS 39.
IFRS 9 retains but simplifies the mixed
measurement model and establishes
two primary measurement categories
for financial assets: amortised
cost and fair value. The basis of
classification depends on the entity’s
business model and the contractual
cash flow characteristics of the
financial asset. The guidance in IAS
39 on impairment of financial assets
and hedge accounting continues
to apply. Effective date 1 January
2015. The Group has yet to assess
IFRS 9’s full impact and intends
to adopt IFRS 9 no later than the
accounting period beginning on or
after 1 January 2015.
IFRS 10, ‘Consolidated financial
statements’ – The objective of IFRS
10 is to establish principles for
the presentation and preparation of
consolidated financial statements
when an entity that controls
one or more entities to present
consolidated financial statements. It
defines the principle of control, and
establishes controls as the basis
for consolidation. It sets out how
to apply the principle of control to
identify whether an investor controls
an investee and therefore must
consolidate the investee. It also sets
out the accounting requirements
for the preparation of consolidated
financial statements. Effective date
1 January 2013.
Based upon the Group’s assessment
of IFRS 10, DMI will consolidate
effective 1 January 2013 Faisal
Islamic Bank of Egypt (FIBE) due to
the control of the company through
its Board of Directors and the
dispersed nature of the remaining
shareholders. FIBE’s net asset value
at 31 December 2012 is $419.6
million, with a net profit of $104.0
million (note 14) for the year then
ended, based upon local statutory
accounting principal. DMI’s 2012
Consolidated Financial Statements
will be restated accordingly.
IFRS 11, ‘Joint arrangements’ – This
standard is a more realistic reflection
of joint arrangements by focusing
on the rights and obligations of the
arrangement rather than its legal
form. There are two types of joint
arrangement: joint operations and
joint ventures. Joint operations arise
where a joint operator has rights to
the assets and obligations relating
to the arrangement and hence
accounts for its interest in assets,
liabilities, revenue and expenses.
Joint ventures arise where the joint
operator has rights to the net assets
of the arrangement and hence equity
accounts for its interest. Proportional
consolidation of joint ventures is
no longer allowed. Effective date
1 January 2013.
IFRS 12, ‘Disclosures of interest
in other entities’ – This standard
includes the disclosure requirements
for all forms of interests in
other entities, including joint
arrangements, associates, special
purpose vehicles and other off
balance sheet vehicles. The Group
does not expect a material impact
on the financial statements other
than required disclosures. Effective
date 1 January 2013.
Amendments to IFRSs 10, 11 and
12 on transition guidance. These
amendments provide additional
transition relief to IFRS10, 11and12,
limiting the requirement to provide
adjusted comparative information
to only the preceding comparative
period. For disclosures related to
unconsolidated structured entities,
the amendments will remove the
requirement to present comparative
information for periods before IFRS
12 is first applied. Effective date
1 January 2013.
IFRS 13, ‘Fair value measurement’
- This standard aims to improve
consistency and reduce complexity
by providing a precise definition of
fair value and a single source of fair
value measurement and disclosure
requirements for use across IFRSs.
The requirements, which are largely
aligned between IFRSs and US GAAP,
do not extend the use of fair value
accounting but provide guidance on
how it should be applied where its
use is already required or permitted
by other standards within IFRSs and
US GAAP. The Group anticipates
enhanced fair value disclosures.
Effective date 1 January 2013.
19
Dar Al-Maal Al-Islami Trust
Annual Report 2012
