Page 85 - ICD-AR22-English

Notes to the Separate Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2022
Policies applicable prior to January 1, 2022
i) Subsidiaries
An entity is classified as a subsidiary if the Corporation can exercise control over the entity. Control is power to govern the financial and operating policies of an entity with the objective of earning benefits from its operation. Control is presumed to exist if the Corporation holds, directly or indirectly through its subsidiaries, 50 per cent or more of the voting rights in the entity, unless it can be clearly demonstrated otherwise. Conversely, control may also exist through agreement with the entity’s other members or the entity itself regardless of the level of shareholding that the Corporation has in the entity.
The adoption of the IFRS 10 amendments exempted the Corporation from the consolidation of its subsidiaries. The Corporation measured and evaluated the performance of all its subsidiaries on a fair value basis because using fair values results in more relevant information. As per the Amendments, investments in subsidiaries were measured at fair value through income statement. Any unrealized gains or losses arising from the measurement of subsidiaries at fair value were recognized directly in the income statement.
ii) Associates
An entity is classified as an associate of the Corporation if the Corporation can exercise significant influence
on the entity. Significant influence is presumed to exist if the Corporation holds, directly or indirectly through its subsidiaries, 20 per cent or more of the voting rights in the entity, unless it can be clearly demonstrated otherwise. Conversely, significant influence may also exist through agreement with the entity’s other members or the entity itself regardless of the level of shareholding that the Corporation has in the entity.
The adoption of the Amendments required investments in associates to be measured at fair value through income statement. These investments were initially and subsequently measured at fair value. Any unrealized gains or losses arising from the measurement of associates at fair value were recognized directly in the income statement.
iii) Other investments
Entities where the Corporation does not have significant influence or control were categorised as other investments.
iv) Sukuk investments
Sukuk are certificates of equal value representing undivided share in ownership of tangible assets, usufructs, services or (in the ownership) of assets of a particular project. These were measured at fair value through income statement.
v) Initial measurement
All investments were initially recorded in the statement of financial position at fair value. All transaction costs were recognised directly in income statement.
vi) Subsequent measurement
After initial recognition, all investments were measured at fair value and any gain or loss arising from a change in fair value were included in the income statement in the period in which it arose.
REINVIGORATING THE PRIVATE SECTOR TO SHAPE A BETTER FUTURE 83