DMIT Annual Report 2017

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 70 17. Intangible assets (continued) The Board of Directors of Islamic Investment Company of the Gulf (Bahamas) Limited (IICG) decided to close its business activities in Saudi Arabia within the next 5 years, following the directives of the regulatory authorities in the Kingdom of Saudi Arabia. Subsequently, the Group reassessed the valuation of the Company, and impaired the goodwill Nil (2016: USD 32.2 million). Impairment has been recognised on the intangible balances of USD 14.5 million (2016: Nil). 18. Assets classified as held-for-sale Description 2017 2016 BBK B.S.C. 411,466 - Citic International Assets Management Ltd. (CIAM) 65,716 - 477,182 - The group classified BBK B.S.C. and CIAM as asset held-for-sale on 1 July 2017 and 31 December 2017 respectively. The classification was based on Group meeting the following conditions, - The assets were available for in its immediate sell in its present condition - The IB Capital B.S.C.(C) board had formerly resolved the intention to immediately sell the above investments. - An active mandate was provided to the third party to sell the above investments at a price that was reasonable to its current fair value. Based on reassessment performed by the management, in the above conditions were valid for BBK B.S.C. as at 31 December 2017. A fair value loss of USD 12mn was recognised in the consolidated income statement for BBK B.S.C. on 1 July 2017. Based on FVLCTS performed by an independent third party, management concluded that the carrying value of the above investment was lower as at 31 December 2017 and hence no further fair value adjustment was included in consolidated financial statements. On 31 March 2018, the Group has reclassified investment in BBK. B.S.C. as an associate as the conditions for classification as asset held for sale were no longer met as the sale was no longer highly probable. Assets classified as held-for sale amounting to USD 411 million is pledged as collateral against borrowings with the terms and conditions in the ordinary course of business.