DMIT Annual Report 2017

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 50 10. Investment securities 2017 2016 (Restated) Investment securities available-for-sale 1,393,742 1,531,717 Investment securities carried at fair value through profit or loss (Debt) 76,878 79,501 Investment securities held to maturity (Debt) 122,260 200,098 1,592,880 1,811,316 Gains from investment securities Sale of available-for-sale assets 84,005 96,300 Derecognition of available-for-sale assets - 24 Provision for impairment of available-for-sale assets (10,417) (6,346) (Losses)/gains on available-for-sale designated to income (425) 1,346 Provision for impairment held-to-maturity (41) 526 Term finance certificates 116 214 73,238 92,064 The investment securities available for sale portfolio consist mainly of debt instruments. These are tested for impairment annually and no impairment indicators were identified based on factors such as profit coupon payments, the ability of the issuers and the fact that bonds are issued based on the government’s support. The movement in investment securities available-for-sale is summarised as follows: 2017 2016 (Restated) At 1 January 1,593,717 1,584,683 Additions 3,710,005 2,334,707 Disposals (3,758,700) (2,391,406) Net gains from changes in fair value (5,634) 3,146 Net gains/(losses) fair value designated to income (425) 1,346 Exchange differences (72,804) 5,587 Reversal of impairment provision 547 455 Provision for impairment (10,964) (6,801) At 31 December 1,393,742 1,531,717 The movement in investment securities held-to-maturity is summarised as follows: 2017 2016 (Restated) At 1 January 200,098 229,261 Additions 23,284 - Matured (93,397) (30,800) Provision for impairment (41) 526 Exchange differences (7,684) 1,111 At 31 December 122,260 200,098 The carrying value of investment securities held-to-maturity (net of impairment provision) approximates fair value as calculated by discounting the future expected cash flows. On this basis these investments would be classified as Level 3. Included in 2016 additions in Investment securities carried at fair value through profit or loss is the subscription of perpetual convertible capital securities of an asset held for sale (2016 : an associate).