Page 80 - ICD-AR22-English

Notes to the Separate Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2022
For the year ended December 31, 2021, the Corporation carried its sukuk investments at fair value with changes in fair value being recognized in statement of income.
The details of subsidiaries are presented in Note 13.1
The preparation of separate financial statements requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires management to exercise its judgment in the process of applying the Corporation’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the separate financial statements are disclosed in note 4.
The separate financial statements are prepared under the historical cost convention except for the following items in the separate statement of financial position:
• investments in equity capital and other investments measured at fair value through equity; and
• Profit rate and cross-currency swaps and investments in Sukuk which are measured at fair value through
equity.
• Post-employment benefit plan is measured using actuarial present value calculation based on projected unit credit method.
These separate financial statements are presented in United States Dollars (“USD”) which is also the functional currency of the Corporation.
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the Corporation’s significant accounting policies:
Foreign currency transactions and balances
Monetary and non-monetary transactions denominated or requiring settlement in a foreign currency are translated into United States Dollars (“USD”) at the spot exchange rates at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are retranslated at the exchange rate ruling on the reporting date. Foreign currency differences resulting from retranslation of monetary assets and liabilities denominated in foreign currencies are recognized in the separate income statement as foreign exchange gains/losses.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value (including Equity investments) are retranslated into the unit of account at the spot exchange rate at the date that the
fair value was determined. Foreign currency differences resulting from translation of such investments are recognized in the fair value reserve account under members’ equity.
78 ICD ANNUAL REPORT 2022