31 / 87
Notes to the Consolidated Financial Statements
29
Dar Al-Maal Al-Islami Trust
Annual Report 2014
In its assessment of the Ithmaar
Bank B.S.C. CGU the value based
on the sum-of-the-parts approach
exceeded its carrying value and as
such no impairment charge was
taken. The key assumptions used in
this sum-of-the-parts computation
were the following:
• Formerly Shamil Bank: long
term growth rate of 4.5%
(2013: 3.6%), discount rate
of 13.4% (2013: 17.4%);
• Faysal Bank Limited: long
term growth rate of 3%
(2013: 3%), discount rate of
22.1% (2013: 25%);
• BBK: long term growth rate
of 4% (2013: 4%), cost of
the equity of 11.9% (2013:
10%), control premium of
15%;
• Ithmaar Bank residual assets:
investments measured at their
carrying value adjusted for
fair value changes.
A shift in either the growth or
discount rates of 1% would also not
have resulted in any impairment.
On the basis that the Group used
a discounted cash flow model to
arrive at a value in use of Islamic
Investment Company of the Gulf
(Bahamas) Limited CGU which
ultimately was higher than the
carrying amount no impairment
charge was recorded in the
consolidated financial statements
(2013: $Nil million). Management’s
assessment of the value in use of
Islamic Investment Company of the
Gulf (Bahamas) Limited exceeds
its carrying value, therefore any
significant changes to assumptions
used in management’s assessment
will not result in impairment.
3. Critical accounting
estimates and
judgements in applying
accounting policies
(continued)