V- Expenses Direct and indirect operating costs are classified as operating expenses. All other expenses are classified as general and ad- ministrative expenses. W- Borrowing costs Borrowings are recognized at the proceeds received, net of transactions costs incurred, Borrowing costs that are directly at- tributable to the acquisition, construction or production of assets are capitalized as part of those assets. Other borrowing costs are charged to the consolidated statement of income. X- Foreign currency transactions Foreign currency transactions are translated into Saudi riyals at prevailing exchange rates at the date of the transaction. Mon- etary assets and liabilities denominated in foreign currencies at the balance sheet date are translated into Saudi riyals at the prevailing exchange rates on that date. Exchange differences are included in the consolidated statement of income. Assets and liabilities shown in the financial statement of the consolidated subsidiaries denominated in foreign currencies are translated into Saudi riyals at exchange rates prevailing at the consolidated balance sheet date. Revenues and expenses of the consolidated subsidiaries denominated in foreign currencies are translated into Saudi riyals at average exchange rates for the year, the components of equity, other than retained earnings (or accumulated losses, if any) are translated at the date of oc- currence of each component. Exchange differences, if material, are included in a separate line item within shareholders’ equity.
Y- Operating leases Operating lease payments are charged to the consolidated statement of income on a straight-line basis over the period of the lease.
Z- Earnings per share and proposed dividends Earnings per share from operating income, other operations and net income for the year is calculated based on the weighted average number of shares outstanding during the year. Proposed dividends, after the year end, are treated as part of retained earnings and not as liabilities unless the General Assembly approves it before the year end. Once approved by the General As- sembly, the amount is recognized as a liability in the same year until paid.
AA- Sector reporting The operating segment is a group of assets, processes or entities:
That are engaged in revenue operating activities
Whose results of operating which are continuously analyzed by management in order to make decisions related to resource allocation and performance appraisal
Their financial information is available separately.
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The National Shipping Company of Saudi Arabia ( )
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