DMIT Annual Report 2017

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 54 12. Accounts and other financial assets 2017 2016 Accounts receivable 203,693 219,355 Provision for bad and doubtful debts (Note 9) (63,748) (44,428) Repossessed assets 18,529 18,529 Prepayments 22,529 19,529 Other receivables 239,309 132,711 Derivative financial instruments (Note 11) - 156 379,254 326,323 Foreign exchange derivatives held for trading: 2017 Contractual amount Fair value Equity futures - - Currency forwards - - 2016 Equity futures - - Currency forwards 12,097 156 13. Investment property 2017 2016 At 1 January 509,049 526,180 Additions 4,966 352 Disposals (13,526) (8,261) Fair value during the year 26,622 (4,627) Net exchange differences (1,051) (4,595) At 31 December 526,060 509,049 Rental income from investment property amounting to USD 4 million (2016: USD 4.2 million) has been included in the consolidated statement of income under other income (Note 28). Investment properties are located in the Middle East, Canada, Asia and Europe. The valuation of the investment properties is based on the sales comparable approach with the key inputs being the price per square foot or on market comparable approach using rents, sale and discounted cash flows. On this basis and considering that there are no observable inputs, these investment properties are classified as level 3. Sensitivity of Level 3 measurements to changes in assumptions An assumed ± 10% movement in the fair value of Level 3 measurement has the following impact due to sensitivity of price per square foot or meter used in the valuation methodology: Impact in income At 31 December 2017 Favourable changes Unfavourable changes Investment property 52,606 52,606 At 31 December 2016 Investment property 50,905 50,905