Bahri Annual Report-2016

115

114

Consolidated Financial Statement

Bahri Annual Report

Consolidated Financial Statement

Bahri Annual Report

Significant Accounting Policies (Continued)

Significant Accounting Policies (Continued)

y. Segment reporting The operating segment is a group of assets, processes or entities that: • Are engaged in revenue operating activities; • Have operation results which are continuously analyzed by management in order to make decisions related to resource allocation and performance assessment. • Their financial information are available separately.

the weighted average number of shares outstanding during the period. Proposed dividends after the period end are treated as part of retained earnings and not as liabilities unless the General Assembly approves it before the period end. Once approved by the General Assembly, the amount is recognized as a liability in the same period until paid.

voyage policy in determining the revenues and expenses of the period for vessels transporting general cargo. A voyage is considered to be a “Complete Voyage” when a vessel has sailed from the last discharging port of a voyage. Shipping revenues, direct expenses, and indirect expenses of incomplete voyage are deferred until it is completed. Incomplete voyages are shown at the net amount in the consolidated balance sheet as “Incomplete Voyages”. • Revenues from chartering andotherassociatedactivities: Recorded when services are rendered over the duration of the related contractual services. v. Bunker subsidy Bunker subsidy is computed on bunker quantities purchased and consumed by the Group, and recorded in the consolidated statement of income. Provisions are made for doubtful amounts. w. Operating leases Operating leases payments are charged to the consolidated statement of income on a straight- line basis over the period of the related leases. x. Earnings per share and proposed dividends Earnings per share from operating income and net profit for the period is calculated based on • Other income is recorded when earned.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualified for hedge accounting. At that time, for forecast transactions, any cumulative gain or loss on the hedging instrument recognized in equity is retained in equity until the forecasted transactions occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in equity is transferred to the consolidated statement of income for the period. t. Statutory reserve In accordance with Saudi Arabian Regulations for Companies, the Company is required to transfer 10% of net income to the statutory reserve. In accordance with the Company’s by-laws, the Company may discontinue such transfers when the reserve equals to half of the paid-up capital. Shares’ premium are included with the statutory reserve. This reserve is not available for distribution to shareholders. u. Revenue recognition The Group follows the accrual basis of accounting for the recognition of revenues and expenses for the period as follows: • Transport of Crude Oil, Petrochemical, and Dry Bulk: Revenues from transport of oil, petrochemicals, and dry bulk are recognized when earned over the agreed-upon period of the contract, voyage and services.

3. Cash And Cash Equivalents

million as of December 31, 2016 (2015: SR 97.03 million).

Cash and cash equivalents represent bank balances and cash, and investments in Murabaha and short- term deposits, out of which SR 117.32

2016 For the purpose of the consolidated statement of cash flows, cash and cash equivalents as of December 31 comprise the following: 2015

171,731

Bank balances and cash

173,265

(14,342)

Amounts restricted by banks

(23,213)

157,389

150,052

1,908,262

Murabaha and short-term deposits

1,066,597

(102,974)

Amounts restricted by banks

(73,818)

1,805,288

992,779

1,962,677

Cash and cash equivalents balance at the end of the period

1,142,831

4. Murabaha And Short-Term Deposits

Murabaha and short- term deposits comprise the following at December 31:

2016

2015

1,463,198

Murabaha and short-term deposits in Saudi Riyals

290,249

• General Cargo Transportation: the Group follows the complete

445,064

Murabaha and short-term deposits in USD

776,348

1,908,262

1,066,597

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