Notes to the Consolidated Financial Statements
(Thousands of US dollars)
71
Dar Al-Maal Al-Islami Trust
Annual Report 2013
34. Retirement benefit plans
(continued)
35. Related party
transactions and
balances
The Group has not changed the processes used to manage its risks from
previous periods. The Group does not use derivatives to manage its risk.
Investments are well diversified, such that the failure of any single investment
would not have a material impact on the overall level of assets. A large portion
of assets in 2013 are managed by an insurance company, although the Group
also invests in property and cash.
Expected contributions to post-employment benefit plans for the year ending
31 December 2014 are $1.2 million (2013: $1.6 million).
The weighted average duration of the defined benefit obligation is 8.5 years.
The expected maturity analysis of undiscounted pension benefits at
31 December 2013 was:
Less than Between one Between three
Over five
a year
to two years to five years
years Total
Undiscounted
pension benefits
1,267 3,075 7,086 15,336 26,764
Related parties include equity participation holders, directors, associated
companies and other companies, whose ownership and management is
common with DMI or its subsidiaries and associates. A number of transactions
are entered into with related parties in the normal course of business. These
include loans, current and investment accounts. Transactions and balances
disclosed as with associated companies are those with companies in which
DMI owns 20% to 50% of the voting rights and over which it exerts significant
influence, but does not have control. The volumes of related party transactions,
outstanding balances at the year end, and relating income and expense for the
year are as follows.
a) Loans to key management personnel
2013
2012
Loans
Loans outstanding at 1 January
1,549
2,065
Loans issued during the year
103
731
Loan repayments during the year
(1,234)
(1,264)
Foreign exchange
(14)
17
Loans outstanding at 31 December
404
1,549
No provisions were recognised in respect of loans given to related parties
(2012: $Nil).
Loans advanced to key management personnel bear no return and are
unsecured.
