DMI Trust Annual Report 2013 - page 12

10 Dar Al-Maal Al-Islami Trust
Annual Report 2013
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 and new
and amended standards
adopted 18
New and amended
standards and interpretations 19
Consolidation 19
Foreign currency
translation 20
Derivative financial
instruments and hedging 21
Income from investments with
Islamic institutions and
investments in financings 21
Fee and commission
income 21
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 25
INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS
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
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 50
13. Investment property 50
14. Investments in associates 51
15. Property, plant and equipment 57
16. Intangible assets 58
17. Non-current assets and
liabilities and
discontinued operations 59
18. Accounts payable 60
19. Tax liability 60
20. Massaref accounts 61
21. Provisions 61
22. Collateralised borrowings 62
23. Net trading income 62
24. Income from investments
in financings 62
25. Fee and commission
income 62
26. Dividend income 63
27. Gains/(losses) from
other income 63
28. Staff costs 63
29. General and administrative
expenses 63
30. Proposed dividend 63
31. Taxes 63
32. Non-controlling interests 64
33. Funds under management 66
34. Retirement benefit plans 66
35. Related party transactions
and balances 71
36. Contingent liabilities
and commitments 72
37. Current and non-current
assets and liabilities 74
38. Concentration of
assets and liabilities 75
39. Maturities of assets and
liabilities 77
40. Currency exposure 78
41. Trust capital 79
42. Comparatives 79
43. Date of authorization
for issue 79
44. Principal subsidiaries 79