pdf - 1.26 MB - Ahli United Bank


pdf - 1.26 MB - Ahli United Bank



3.3 Summary of significant accounting policies (continued)

(p) Taxes

There is no tax on corporate income in the Kingdom of Bahrain. Taxation on income from foreign entities is provided

for in accordance with the fiscal regulations of the countries in which the respective Group entities operate.

Deferred taxation is provided for using the liability method on all temporary differences calculated at the rate at which

it is expected to be payable. Deferred tax assets are only recognised if recovery is probable.

(q) Fiduciary assets

Assets held in trust or in a fiduciary capacity are not treated as assets of the Group and, accordingly, are not incorporated

in the consolidated balance sheet.

(r) Minority interest

Minority interest represents the portion of profit or loss and net assets in the subsidiaries not attributable to the Bank’s


(s) Redeemable preference shares


Preference shares which carry a mandatory coupon, and are redeemable at a fixed future date, are recognised as

liabilities in the consolidated balance sheet, at amortised cost. The corresponding dividends on those shares are

charged as interest expense in the consolidated statement of income.

(t) Dividend on ordinary shares

Dividend on ordinary shares are recognised as liability and deducted from equity when they are approved by the

Bank’s shareholders.


Dividends for the period that are approved after the balance sheet date are shown as an appropriation and reported

in the consolidated statement of changes in equity, as an event after the balance sheet date.

(u) Employees’ share purchase plan

The Group operates an employees’ share purchase plan for certain eligible employees. The difference between the

issue price and the fair value of the shares at the grant date is amortised over the vesting period in the consolidated

statement of income with a corresponding effect to equity.

(v) Financial guarantees

In the ordinary course of business, the Group gives financial guarantees, consisting of letters of credit, guarantees and


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