Emaar Sukuk Ltd XS0586840588 - London Stock Exchange

EMAAR Properties PJSC and SubsidiariesEMAAR Properties PJSC and SubsidiariesNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAt 31 December 2008NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAt 31 December 20083 SEGMENT INFORMATION (continued)2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)Fair valuesFor investments traded in an active market, fair value is determined by reference to quoted market bid prices.The fair value of interest-bearing items is estimated based on discounted cash flows using interest rates for itemswith similar terms and risk characteristics.For unquoted equity investments, fair value is determined by reference to the market value of a similar investmentor is based on the expected discounted cash flows.The fair value of forward foreign exchange contracts is calculated by reference to current forward exchange rateswith the same maturity.Treasury sharesTreasury shares consist of the Company’s own shares that have been issued, subsequently repurchased by thecompany and not yet reissued or cancelled. These shares are accounted for using the cost method. Under the costmethod the average cost of the share repurchased is shown as deduction from the total shareholders’ equity. Whenthese shares are reissued, gains are credited to a separate capital reserve in shareholders’ equity, which is nondistributable.Any realised losses are charged directly to retained earnings. Gains realised on the sale of reissueshares are first used to offset any previously recorded losses in the order of retained earning and the capital reserveaccount. No cash dividend are paid on these shares.3 SEGMENT INFORMATIONBusiness segment:For management purposes, the Group is organised into two major business segments.The real estate segment develops and sells condominiums, villas, commercial units and plots of land and relatedleasing activities. Other segments include businesses that individually do not meet the criteria for a reportablesegment as per IAS 14. These businesses are property management services, education, healthcare, hospitality,retail and investment in providers of financial services.Income from sources other than the real estate segment is included in other operating income.Geographic segments:The Group is currently developing a number of international business opportunities outside the United ArabEmirates that will have a significant impact in future periods.The domestic segment includes business activity and operations in the UAE and the international segment includesbusiness activity and operations outside the UAE.Business SegmentsThe following table represent revenue and profit information and certain asset and liability information regardingbusiness segments for the years ended 31 December 2008 and 2007.2008Real estate Others Eliminations TotalAED’000 AED’000 AED’000 AED’000RevenueRevenue from external customers 15,443,308 576,949 (5,124) 16,015,133 ResultsProfit before income tax, financecosts, finance income, share ofresults from associates andimpairment of goodwill 5,117,405 (119,725) (2,642) 4,995,038 Assets and liabilitiesSegment assets 56,207,545 9,203,522 (4,720,269) 60,690,798 Segment liabilities 23,866,996 4,382,967 (4,121,519) 24,128,444 Other segment informationCapital expenditure (Property,plant and equipment) 4,403,104 1,445,084 - 5,848,188 Depreciation (Property,plant and equipment) 99,486 115,925 - 215,411 2007 (restated):Real estate Others Eliminations TotalAED’000 AED’000 AED’000 AED’000RevenueRevenue from external customers 17,565,895 302,777 - 17,868,672 Total revenue 17,565,895 302,777 - 17,868,672 ResultsProfit before income tax, financecosts, finance income, share ofresults from associates andimpairment of goodwill 5,963,712 (57,268) - 5,906,444 Assets and liabilitiesSegment assets 51,324,032 6,808,674 (3,341,831) 54,790,875 Segment liabilities 16,890,454 2,877,958 (2,165,803) 17,602,609 Other segment informationCapital expenditure (Property,plant and equipment) 2,458,695 1,237,302 - 3,695,997 Depreciation (Property,plant and equipment) 74,706 80,952 - 155,658 Emaar Annual Report I 24 Emaar Annual Report I 25F-77