Annual Report 2024

Dar Al-Maal Al-Islami Trust NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2024 in thousands of USD 8 1. Formation and activities Dar Al-Maal Al-Islami Trust (DMI) was formed by indenture under the laws of the Commonwealth of The Bahamas for the purpose of conducting business affairs in conformity with Islamic law, principles and traditions. DMI subsidiaries and associates offer a wide range of Islamic financial services including investment, commercial and private banking, private equity, public and private issue of securities, mergers and acquisitions advice, takaful, equipment leasing real estate development and modarabas. 2. Accounting policies The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Basis of preparation The consolidated financial statements of DMI and its subsidiaries (the Group) are prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS interpretations. The consolidated financial statements are prepared under the historical cost convention, except for securities carried at fair value through other comprehensive income, investment securities carried at fair value through profit and loss and investment properties which are carried at fair value. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3. New standards, amendments and interpretations (i) Changes in material accounting policies In the current year, the Group has applied the below amendments to accounting standards and interpretations of accounting standards that are effective for annual periods beginning on or after 1 January 2024. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements. (i) Amendments to IAS 1 – Classification of Liabilities as Current or Non-current (ii) Amendments to IAS 1 – Non-current Liabilities with Covenants (iii) Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements (iv) Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback (ii) New standards and amendments issued but not yet effective At the date of the authorization of these financial statements, the Group has not applied the following new and revised IFRS Accounting Standards that have been issued but not yet effective: (i) Lack of Exchangeability - Amendments to IAS 21 (ii) Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7 (iii) Annual Improvements to IFRS Accounting Standards - Volume 11 (iv) IFRS 18 Presentation and Disclosure in Financial Statements (v) IFRS 19 Subsidiaries without Public Accountability: Disclosures (vi) Sale or Contribution of Assets between an Investor and its Associate or Joint Venture - Amendments IFRS 10 and IAS 28 IFRS 18 will replace IAS 1 Presentation of Financial Statements and applies for annual reporting periods beginning on or after 1 January 2027. The Group is still in the process of assessing the impact of the new standard, particularly with respect to the structure of the Group's statement of profit or loss, the statement of cash flows and the additional disclosures required for Management-defined performance measures ("MPM"). Other than IFRS 18, the management does not expect that the adoption of the above accounting standards will have a material impact on the Group's financial statements in future periods. Material accounting policies Consolidation (a) Subsidiaries Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which control ceases.