Annual Report - Ahli United Bank

ahliunited.com

Annual Report - Ahli United Bank

11 NON-TRADING INVESTMENTS (continued)The deterioration in the financial markets in the third quarter of 2008 was viewed globally as a rare circumstance to have occurred inthe financial sector. The IASB issued “Reclassification of Financial Assets: Amendments to IAS 39 - Recognition and Measurement andIFRS 7: Disclosures” which permits the reclassification of certain financial assets under such rare circumstances. Accordingly, the Grouphad performed the following reclassifications:(i) Financial assets reclassified into the “loans and receivables” category from “available-for-sale” categoryThe carrying value of the financial assets reclassified into the loans and receivables category from available-for-sale category asat the date of reclassification of 1 July 2008 was US$ 1,991,712 thousand and the fair value losses recognised in the cumulativechanges in available-for-sale reserve upto that date was US$ 108,527 thousand.2009 2008US$ ’000 US$ ’000Carrying value as at 31 December 1,688,534 2,001,935Fair value as at 31 December 1,571,622 1,821,130Fair value losses that would have been recognised in the cumulative changesin available-for-sale reserve had the non-trading investments not been reclassified (116,912) (180,805)The Group earns interest income on these investments at an effective interest rate of 4.3% (2008: 6.4%) and the carrying values ofthese financial instruments reflect the cash flows expected to be recovered at the date of reclassification of these financial assets.(ii) Financial assets reclassified into the “available-for-sale” category from “trading securities” categoryThe carrying value of the financial assets reclassified into the available-for-sale category from trading securities category as at thedate of reclassification of 1 July 2008 was US$ 86,901 thousand and the fair value losses recognised in the consolidated statementof income upto that date was US$ 3,823 thousand.2009 2008US$ ’000 US$ ’000Carrying value and fair value as at 31 December 79,142 79,881Fair value losses that would have been recognised in the consolidated statement ofincome for the year had the financial assets not been reclassified. (739) (7,020)12 INVESTMENTS IN ASSOCIATES AND JOINT VENTUREThe principal associates and joint venture of the Group are:a) AssociatesName Country of incorporation Holding2009 2008Ahli Bank Q.S.C. (ABQ) State of Qatar 38.1% 40.0%Ahli Bank S.A.O.G. (ABO) Sultanate of Oman 35.0% 35.0%During 2010, on completion of registration of additional 2.92 million shares due to private placement subscription by QatarInvestment Authority in ABQ, AUB’s holding will be further diluted to 36.4%.AUB Annual Report 200969

More magazines by this user
Similar magazines