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Notes to the Consolidated Financial Statements
34
Dar Al-Maal Al-Islami Trust
Annual Report 2014
4. Financial instruments
(continued)
Restructuring activities include
extended payment arrangements,
approved external management
plans, modification and deferral of
payments. Following restructuring,
a previously overdue customer
account is reset to a normal status
and managed together with other
similar accounts. Restructuring
policies and practices are based
on indicators or criteria which, in
the judgement of management,
indicate that payment will most
likely continue. These policies are
kept under continuous review.
Credit risk exposure relating to on-balance sheet assets is as follows:
Maximum exposure
2014
2013
Cash and cash equivalent
764,670
985,984
Investments with Islamic institutions
121,188
118,001
Trading securities
283,316
82,663
Investments in financings:
Corporate financing
1,126,483 1,703,498
Bank and other financial institutions
86,331
-
Agricultural financing
92,499
76,784
Government/public financing
381,732
-
Trust financing
110,792
108,590
Consumer financing
190,660
166,723
Other financing
188,792
31,032
Investment securities
1,505,615 1,180,535
Accounts receivable (note 12)
186,501
164,958
Total financial assets
5,038,579 4,618,768
Credit risk exposure relating to
off-balance sheet items are as follows:
Financial acceptances, performance
bonds, guarantees and
irrevocable letters of credit
1,312,338 1,165,933
Financing commitments, undrawn
facilities and other credit related liabilities 1,464,428 1,150,456
Total off-balance sheet
2,776,766 2,316,389
At 31 December
7,815,345 6,935,157
Fair value of collateral
4,329,270 3,582,204
accounts. The assessment normally
encompasses collateral held
(including re-confirmation of its
enforceability) and the anticipated
receipts for that individual account.
Collectively assessed impairment
allowances are provided for:
(i) portfolios of homogeneous
assets that are individually below
materiality thresholds; and (ii)
losses that have been incurred
but have not yet been identified,
by using the available historical
experience, experienced judgement
and statistical techniques.
(Thousands of US dollars)