Page 209 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS in retrospect

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for the financial year ended 31 december 2020 (continUed)
the Will to Suceed

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2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.19 Retakaful (continued)
retakaful assets or liabilities are derecognised when the contractual rights are extinguished or expired or when the achieving a leading repute
contract is transferred to another party.
retakaful contracts that do not transfer significant takaful risk are accounted for directly through the statement of |
financial position. these are deposit assets or financial liabilities that are recognised based on the consideration paid or
received less any explicit identified contributions or fees to be retained by the retakaful operators. investment income on
these contracts is accounted for using the effective yield method when accrued.

2.20 Contingencies Paving the Way for a Sustainable future

Contingent liabilities
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated
reliably, the obligation is not recognised in the statements of financial position and is disclosed as a contingent liability,
unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be
confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities
unless the probability of outflow of economic benefits is remote. 203
Contingent assets
Where it is not possible that there is an inflow of economic benefits, or the amount cannot be estimated reliably, the asset
is not recognised in the statements of financial position and is disclosed as a contingent asset, unless the probability of
inflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or
non-occurrence of one or more future events, are also disclosed as contingent assets unless the probability of inflow of
economic benefits is remote. adhering to the best Governance Practices

2.21 Operating segments
an operating segment is a component of the Group that engages in business activities from which it may earn revenue
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and incur expenses, including revenue and expenses that relate to transactions with any of the Group’s other components.
operating segment results are reviewed regularly by the chief operating decision maker, which in this case is the chief
executive officer of the Group’s holding company, to make decisions about resources to be allocated to the segment and
to assess its performance, and for which discrete financial information is available.

2.22 Equity instruments Laying the Foundation for Financial Growth
Share Capital

ordinary shares are classified as equity in the statement of financial position. cost directly attributable to the issuance of
new equity shares are taken to equity as a deduction from the proceeds.
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Dividend distribution
liability is recognised for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the Group, on or before the end of the reporting period but not distributed at the end of the reporting
period. additional information & disclosure Summary
distributions to holders of an equity instrument is recognised directly in equity.
Warrants
Warrants issued by the Group and the company is an equity instrument and classified as equity in the statement of
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financial position.
24 th aGm information
these warrants issued are free detachable warrants which will expire at the end of ten years from the date of issuance.