Annual Report 2017
198
199
Notes to the Consolidated Financial Statements (continued) December 31, 2017 (In Thousands Saudi Riyal)
11 Consolidated Financial Statements
32. FIRST TIME ADOPTION OF IFRS (continued) 32.1 Exemptions (continued) Borrowing costs
Notes to the Consolidated Financial Statements (continued) December 31, 2017 (In Thousands Saudi Riyal)
31. NON-CONTROLLING INTERESTS IN SUBSIDIARIES (continued)
The Group has applied the transitional provisions in IAS 23 Borrowing Costs and capitalizes borrowing costs relating to all qualifying assets after the date of transition. Similarly, the Group has not restated for capitalized borrowing costs under SOCPA GAAP on qualifying assets prior to the date of transition to IFRS as endorsed in KSA.
1 January 2016
National Chemical Car- rier Company Limited
32.2 Reconciliation of statement of financial position
Bahri Dry Bulk LLC
Total
A. Reconciliation of statement of financial position as at 1 January 2016 (date of transition to IFRS as endorsed in KSA)
40%
Non-controlling interest Percentage
20%
585,615 112,890 (351,245) (54,532) 292,728 117,091
Non-current assets
2,917,058
3,502,673
IFRS Adjustments
Current assets
241,908
354,798
1 January 2016 (IFRS as endorsed in KSA)
Non-current liabilities
(1,489,542) (368,309) 1,301,115
(1,840,787) (422,841) 1,593,843
As at 1 January 2016 (SOCPA GAAP)
Re- classification
Re- measurement
Note
Current liabilities
Net assets
ASSETS NON-CURRENT ASSETS Property and equipment Ships under construction
Net assets attributable to non-controlling interests
260,223
377,314
32,6
12,798,271 1,099,901
126,586
(282,188)
12,642,669 1,099,901
32. FIRST TIME ADOPTION OF IFRS These consolidated financial statements, for the year ending December 31, 2017, have been prepared in accordance with IFRS as endorsed in KSA. The Group prepared its consolidated financial statements for all years up to the year December 31, 2016 in accordance with Generally Accepted Accounting Principal (GAAP) issued by Saudi Organization for Certified Public Accountants (“SOCPA”) in KSA (Refer to as “SOCPA GAAP”) Accordingly, the Group has prepared consolidated financial statements that comply with IFRS as endorsed in KSA along with the comparative figures for the year ending December 31, 2016. This note explains the principal adjustments made by the Group in preparing: • The opening consolidated statement of financial position as at January 1, 2016, the Group’s date of transitioning from SOCPA GAAP to IFRS as endorsed in KSA. • Consolidated statement of financial position and reconciliation of equity as at December 31, 2016, and reconciliation of total comprehensive income for the year ending December 31, 2016. 32.1 Exemptions IFRS "First time adoption of International Financial Reporting Standards" as endorsed in KSA allows first-time adopters certain exemptions from the retrospective application of certain requirements under IFRS. The Group has applied the following exemptions: Assets and liabilities of subsidiaries, associates and joint ventures An entity which becomes a first-time adopter later than its subsidiary, the entity shall in its consolidated financial statements measure the assets and liabilities of the subsidiary at the same carrying amounts as in the financial statements of the subsidiary, after adjusting for consolidation and equity accounting adjustments and for the effects of the business combination in which the entity acquired the subsidiary. Mideast Ship Management Limited (a subsidiary based in UAE) and Petredec Limited (an associate based on Bermuda) have become first adopters of IFRS before the company. Hence, assets and liabilities have been measured at the same carrying value. Business combinations IFRS 3 "Business Combination" has not been applied to acquisition of subsidiaries, which are considered business for IFRS standards, or of interests in associates and joint ventures that occurred before January 1, 2016. Use of this exemption means carrying amounts of assets and liabilities recognized on the acquisition date under SOCPA, for such transactions have been considered to be their deemed cost.
- - - - -
- - -
Intangible assets
849,464
849,464
Investment in an associates Receivable from finance lease
1,027,941
1,027,941
32,7(c)
330,381 23,576 126,586
(78,651)
251,730 23,576
Other investments
- -
Deferred dry-docking cost, net TOTAL NON-CURRENT ASSETS CURRENT ASSETS Receivable from finance lease – current portion
(126,586)
-
16,256,120
-
(360,839)
15,895,281
8,208
32,7(c)
27,901
-
36,109
Inventories
203,610 989,652 163,686 150,412
- -
-
203,610 989,879 337,423
Trade receivables
32,7(A)
227
Prepayments and other current assets
173,737 (150,412) (6,369) (47,587)
- - - - - -
Accrued bunker subsidy
- - -
Incomplete voyage
6,369
Agents current account
47,587
Murabaha and short term deposits
1,066,597
- -
1.066.597
Cash and cash equivalents TOTAL CURRENT ASSETS
173,265
173.265
2,829,079 19,085,199
(30,631) (30,631)
8,435
2,806,883 18,702,164
TOTAL ASSETS
(352,404)
EQUITY AND LIABILITIES EQUITY Share capital
3,937,500 2,197,890
- - - -
- -
3,937,500 2,197,890
Statutory reserve Other reserves Retained earnings
32.7(B)
-
(11,061) (331,732) (342,793)
(11,061)
3,149,268
2,817,536
Equity attributable to equity holder of the parent
9,284,658
-
8,941,865
Non-controlling interests
414,420
- -
(37,106) (379,899)
377,314
TOTAL EQUITY
9,699,078
9,319,179
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