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Notes to the Consolidated Financial Statements
(Thousands of US dollars)
64
Dar Al-Maal Al-Islami Trust
Annual Report 2014
17. Intangible assets
(continued)
18. Non-current assets
and liabilities and
discontinued operations
held for sale
The carrying amount of goodwill has been allocated to cash-generating units
as follows:
2014
2013
Ithmaar Bank B.S.C
337,952
337,392
Islamic Investment Company
of the Gulf (Bahamas) Limited
32,186
32,186
370,138
369,578
On 31 March 2010, DMI acquired an additional 400 million shares of Ithmaar
Bank B.S.C. by participation in a rights issue at a price of $0.25 per share
for a total consideration of $100 million. As a result of this transaction, DMI
owned 52.6% of the outstanding shares of Ithmaar Bank B.S.C. converting it
from an associate to a subsidiary, which resulted in the full consolidation of
Ithmaar’s income statement and balance sheet at 31 December 2010. The step
acquisition from the associated company to the subsidiary company resulted in
a net gain of $334.9 million, which was included in the consolidated statement
of income. This amount comprised a mark up to fair value of the associated
company shareholding of 44.9%. In assessing the above gain, DMI relied upon
an independent valuation commissioned from an international firm of chartered
accountants who established a value using various valuation methodologies
comprising the average of a peer group market analysis of banks listed on
the Bahrain Bourse and a discounted cash flow adjusted for an estimated
control premium but which did not include a reference to the market price of
Ithmaar Bank’s shares at the relevant time. Both the independent valuer and
DMI believed that the share price quoted on the Bahrain Bourse did not reflect
the fair value of the business and they also did not consider that the historical
turnover of the shares constituted an active market. As a result, the share price
was disregarded in the valuation.
Non-current assets and liabilities held for sale
At 31 December 2014 non-current assets held for sale included properties
comprising land and buildings in the amount of $18.1 million (2013: $21.0
million) which Faysal Bank Limited (FBL) management intends to dispose of in
the future and the carrying amount will be recovered principally through a sale
transaction rather than continuing use.
From the assets classified at 31 December 2013, $2.9 million from $21 million
were disposed of during 2014 and the carrying amount was recovered through
a sales transaction.