Page 107 - ICD-AR22-English

Notes to the Separate Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2022
14 OTHER ASSETS
Positive fair value of Islamic derivative financial instrument (note a)
Due from related parties (note 23.3) Accrued income
Advances to employees
Other receivables
9,974,232
2,420,537 12,679,706
8,042,451
4,023,339
7,721,386
9,625,081 12,041,601
8,117,563
4,083,273
31 December 2022 USD
31 December 2021 USD
37,140,265
41,588,904
Less: Allowance for credit losses (note 25)
(5,511,369)
(2,701,219)
31,628,896
38,887,685
(a) The Islamic derivative financial instruments represent Islamic foreign currency forwards contracts, Islamic profit rate swaps and Islamic cross currency profit rate swaps. The Islamic foreign currency forward contracts and cross currency profit rate swaps are used as economic hedges to mitigate the risk of currency fluctuation for placements with financial institutions, Sukuk investments, financing assets and Sukuk issued. Profit rate swaps are held to mitigate the effects of the fluctuation in the changes in the cost of financing
by matching the floating rate financing with floating rate income. The Corporation has not designated these instruments in a hedging relationship and, therefore, does not follow hedge accounting requirements of the relevant standards. Included in the table below is the positive and negative fair values of Islamic derivative financial instruments, together with their notional amounts:
Islamic derivative financial instrument
Notional amount USD
Positive fair value USD
Negative fair value USD
Islamic cross currency swaps Islamic profit rate swaps Islamic forward contracts
Islamic cross currency swaps Islamic profit rate swaps Islamic forward contracts
216,989,157
86,500,000
10,730,951
235,235,907
144,116,667
56,906,930
7,588,297
87,298
2,298,637
2,410,626
-
5,310,760
-
(478,193)
-
(198,444)
(4,357,705)
(2,600)
31 December 2022
314,220,108
9,974,232
(478,193)
Islamic derivative financial instrument
Notional amount USD
Positive fair value USD
Negative fair value USD
31 December 2021
436,259,504
7,721,386
(4,558,749)
The gain or loss on the hedged items, representing placements with financial institutions, Sukuk investments, financing assets and Sukuk issued are disclosed in respective notes to the financial statements.
REINVIGORATING THE PRIVATE SECTOR TO SHAPE A BETTER FUTURE 105