Notes to the Consolidated Financial Statements
26
Dar Al-Maal Al-Islami Trust
Annual Report 2013
to locate a buyer and complete
the plan within one year. The
asset (or disposal group) must be
actively marketed for a price that is
reasonable in relation to its current
fair value.
A non-current asset held for sale is
carried at the lower of its carrying
amount and the fair value less
costs to sell. Impairment losses are
recognised through the consolidated
statement of income for any initial or
subsequent write down of the asset
(or disposal group) to fair value
less costs to sell. Subsequent gains
in fair value less costs to sell are
recognised to the extent they do not
exceed the cumulative impairment
losses previously recorded. A non-
current asset is not depreciated
while classified as held for sale or
while part of a disposal group held
for sale.
The Group separately classifies the
material non-current assets held
for sale (or disposal group) in the
consolidated statement of financial
position. Furthermore, all major
classes of assets and liabilities
are disclosed. Any cumulative
income or expense is disclosed as
a separate item within equity. Prior
period amounts are not re-presented
to reflect the classification of the
assets (or disposal group) in the
current period.
Non-current assets, which are to be
abandoned, are not classified as
held for sale and are reclassified
as discontinued operations, to the
extent they meet the requirements
of discontinued operations in the
paragraph which follows.
If a non-current asset (or disposal
group) ceases to be classified as
held for sale or as discontinued
operations, the results of operations
are reclassified and included in the
consolidated statement of income
from continuing operations for all
periods presented.
Discontinued Operations
A discontinued operation is a
component (cash generating unit)
of an entity that either has been
disposed of or is classified as held
for sale and a) represents a major
business line or geographical area
of operations; b) is part of a single
coordinated plan to dispose of a
separate major business line or
geographical area of operations;
or c) is a subsidiary acquired
exclusively with a view to resell.
The Group presents after tax results
from discontinued operations as
a single separate component of
the statement of income. Revenues,
expenses, taxes, gains or losses
on the measurement to fair value
less costs to sell and cash flows
are additionally disclosed. Prior
periods are reclassified in order to
present all operations that have
been discontinued by the statement
of financial position date of the
latest period presented.
Due to banks and financial
institutions
Due to banks and financial institutions
are initially recorded at fair value and
subsequently measure at amortised
cost using the effective return method.
Borrowings
Borrowings are recognised initially
at fair value net of transaction
costs incurred. Borrowings are
subsequently stated at amortised
cost; any difference between
proceeds net of transaction
costs and the redemption value
is recognised in the consolidated
statement of income over the period
of the borrowings using the effective
return method.
Retirement benefit plans
The Group operates a number
of defined benefit pension plans
throughout the world, the assets of
which are generally held in separate
trustee-administered funds. The
pension plans are generally funded
by payments from employees
and by the relevant Group
companies, taking into account the
recommendations of independent
qualified actuaries.
A defined contribution plan is a
pension plan under which the
Group pays fixed contributions into
a separate entity. The Group has
no legal or constructive obligations
to pay further contributions
if the fund does not hold sufficient
assets to pay all employees the
benefits relating to employee
service in the current and prior
periods. A defined benefit plan is a
pension plan that is not a defined
contribution plan.
Typically defined benefit plans
define an amount of pension benefit
that an employee will receive on
retirement, usually dependent on
one or more factors such as age,
years of service and compensation.
The liability recognised in the
balance sheet in respect of defined
benefit pension plans is the present
value of the defined benefit obligation
at the end of the reporting period
less the fair value of plan assets.
The defined benefit obligation is
calculated annually by independent
actuaries using the projected unit
credit method. The present value
of the defined benefit obligation
is determined by discounting the
estimated future cash outflows using
interest rates of high-quality corporate
bonds that are denominated in the
currency in which the benefits will
be paid, and that have terms to
maturity approximating to the terms
of the related pension obligation.
In countries where there is no deep
market in such bonds, the market
rates on government bonds are used.
Actuarial gains and losses arising
from experience adjustments and
changes in actuarial assumptions
are charged or credited to equity in
other comprehensive income in the
period in which they arise.
Past-service costs are recognised
immediately in income.
For defined contribution plans, the
Group pays contributions to publicly
or privately administered pension
insurance plans on a mandatory,
contractual or voluntary basis.
The Group has no further payment
obligations once the contributions
have been paid. The contributions
are recognised as employee benefit
expense when they are due. Prepaid
contributions are recognised as an
asset to the extent that a cash
refund or a reduction in the future
payments is available.
The Group’s contributions to
defined contribution pension plans
