Notes to the Consolidated Financial Statements
(Thousands of US dollars)
44
Dar Al-Maal Al-Islami Trust
Annual Report 2013
8. Collateral received and
re-pledged
9. Allowance account from
credit losses
There were no assets held as collateral against advances to financial institutions
in the Group at 31 December 2013 (2012: $Nil million).
Repossessed collateral
There were no assets obtained by the Group during 2013 (2012: $Nil million)
in the form of repossessed collateral.
Repossessed properties are sold as soon as practicable, with the proceeds used
to reduce the outstanding indebtedness.
Allowance for impairment
Reconciliation of allowance account for losses on investments in financings by
class and receivables is as follows:
Investments in financings
Corporate Agricultural Consumer
Other
Other
2013
financing financing financing financing receivables
Total
Balance at 1 January
208,487 5,598 17,092
502 41,899 273,578
Provisions for impairment
63,303 1,773 7,272
-
4,182 76,530
Reversal of impairment provision
(8,600)
(640) (6,097)
-
-
(15,337)
Amounts recovered
23,786
-
-
-
-
23,786
Loans written off as uncollectable
(5,018)
-
(480)
-
(1,572)
(7,070)
Foreign exchange
(43,928) (1,016) (1,482)
(47)
2,794 (43,679)
Balance at 31 December
238,030 5,715 16,305
455 47,303 307,808
General impairments
25,862
-
3,770
-
-
29,632
Individually impaired loans
212,167 5,715 12,535
455
-
230,872
Fair value of collateral
341,388 9,616 13,263
-
-
364,267
2012
Balance at 1 January
198,109 4,747 32,002
524 44,392 279,774
Provision for impairment
43,447 1,759 (7,550)
-
14,638 52,294
Reversal of impairment provision
(19,629)
(555) (4,642)
-
(126) (24,952)
Loans written off as uncollectable
(1,544)
-
-
- (13,430) (14,974)
Transfer from other receivables
Foreign exchange
(11,896)
(353) (2,718)
(22) (3,575) (18,564)
Balance at 31 December
208,487 5,598 17,092
502 41,899 273,578
General impairments
-
-
-
-
-
-
Individually impaired loans
208,487 5,598 17,092
502 41,899 273,578
Fair value of collateral
762,546 60,262 89,958
-
-
912,766
Included under expenses at 31 December 2013 is a net charge of $4.2 million
(2012: $14.5 million) of provisions relating to project receivables, which is
included under receivables.
