Bahri Annual Report-2017

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

Powered by