FY 2012 Annual Report - Orascom Development

F-75 Orascom Development 2012 Annual Report F-76
2011
CHF Level 1 Level 2 Level 3 Total
Financial assets at FVTPL
Non-derivative financial assets held for trading 7,294,817 - - 7,294,817
Financial assets at FVTOCI
7,294,817 - - 7,294,817
Listed and unlisted shares measured at FV 18,775,931 - 20,833,360 39,609,291
Derivative financial liabilities designated in a
effective hedge relationship
18,775,931 - 20,833,360 39,609,291
- 1,264,931 - 1,264,931
- 1,264,931 - 1,264,931
There were no transfers between Level 1 and 2 in the period. The financial assets at FVTOCI were measured at fair value based on
a method that combined the earning and net equity book values of the companies.
Reconciliation of Level 3 fair value measurements of financial assets
Unquoted equity
securities
CHF 2012 2011
Opening balance 20,833,360 19,295,157
Total gains or( losses) recognized in other comprehensive income (535,726) 433,494
Transferred to investments in associates (see note 22-iv) (710,008)
Purchases 168,300 1,104,709
Closing balance 19,755,926 20,833,360
40.13 Derivatives
The financial statements include interest rate swaps which are measured at fair value (note 28.3). Fair value is determined by the
counterparty (financial institution) at mark to market.
Management considers that the carrying amounts of financial liabilities recorded at amortised cost in the financial statements
approximate their fair values
41 SHARE-BASED PAYMENTS
At 31 December 2012 and unchanged to prior year, the Group did not have any share option or participation schemes in place and
had not granted any ODH shares to the members of the Board or the Executive Management.
The Group compensated the members of the Board with a fixed fee whereof 50% was paid in cash and the other 50% in
unrestricted shares of the Parent Company. The shares received by the board members had a fair value of CHF 607,997 based on
the quoted market prices at the grant date, and have been recognized in the consolidated statement of comprehensive income as
part of administrative expenses. They will be transferred to the members of the Board in 2013.
42 RELATED PARTY TRANSACTIONS
A party (a company or individual) is related to an entity if:
a) directly, or indirectly through one or more intermediaries, the party:
i. controls, is controlled by, or is under common control with, the entity (this includes parents, subsidiaries and fellow
subsidiaries);
ii.
has an interest in the entity that gives it significant influence over the entity; or
iii. has joint control over the entity;
b) the party is an associate (as defined in IAS 28 Investments in Associates) of the entity;
c) the party is a joint venture in which the entity is a venturer (as defined in IAS 31 Interests in joint ventures);
d) the party is a member of the key management personnel of the entity or its parent;
e) the party is a close member family of any individual referred to in (a) or (d);
f) the party is an entity that is controlled, jointly controlled or significantly influenced by, or which significant voting power in
such entity resides with, directly or indirectly, any individual referred to in (d) or (e); or
g) the party is a post-employment benefit plan for the benefit of employees of the entity, or of any entity that is related party of
the entity.
Balances and transactions between the Group and its subsidiaries, which are related parties of the Group, have been eliminated on
consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed
below.
During the year, the Group purchased services from companies in which members of the Board have a partnership or significant
influence through ownership during the reporting period. These services related to the provision of consultancy services and the
leasing of office space (see note 12).
The following balances were outstanding at the end of the reporting period:
Due from related parties
Due to related parties
CHF 2012 2011 2012 2011
Financial instruments
Three Corners Company 7,479,863 7,202,170 - -
El Gouna Football Club 4,583,355 9,322,175 - -
Falcon for Hotels - - 10,055,238 5,699,176
Kingdom Co. 1,376,136 1,389,044 - -
Camps and lodges 1,145,363 1,111,671 - -
Iskan International Projects 2,140,680 22,276,835 - -
Besix Group SA - - 3,871,000 -
Other (balances less than CHF 120 000 each) 836,273 385,231 1,062,775 61,608
Non controlling shareholders
Tarot Tours Garanah 12,601 1,375,785 2,092,946 -
Mirotel For Floating Hotels 648,774 756,990 - -
Tarot Garranah for touristic transportation 88,996 97,382 - -
Tarot & Merotil Garranah for hotels 181,219 196,530 - -
Close family members
Samih Sawiris – (i) - - - -
Close family companies
Orascom for Touristic Establishments company
(OTEC)
1,148,366 1,242,063 - -
Total 19,641,626 45,355,876 17,081,959 5,760,784
Current 17,500,946 45,218,733 17,081,959 5,760,784
Non-current 2,140,680 137,143 - -
Total 19,641,626 45,355,876 17,081,959 5,760,784
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