DMIT_Annual_Report_2018_EN

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 61 12. Accounts and other financial assets 2018 2017 Accounts receivable 219,774 203,693 Associated companies 519 - Provision for bad and doubtful debts (Note 9) (63,870) (63,748) Repossessed assets 13,312 18,529 Prepayments 25,781 22,529 Other receivables 305,519 198,251 501,035 379,254 13. Investment property 2018 2017 At 1 January 526,060 509,049 Additions 8,511 4,966 Disposals (87,629) (13,526) Change in fair value during the year (6,769) 26,622 Net exchange differences (2,796) (1,051) At 31 December 437,377 526,060 Rental income from investment property amounting to USD 4.5 million (2017: USD 4 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 2018 Favourable changes Unfavourable changes Investment property 43,738 43,738 At 31 December 2017 Investment property 52,606 52,606 Investment property under operating leases The Group leases out part of its investment property under operating leases. The leases are for terms of one to five years. The future aggregate minimum rentals receivable under non-cancellable operating leases are as follows: 2018 2017 Not later than one year 1,951 1,975 Later than one year and not later than five years 2,452 3,874 4,403 5,849