Page 56 - QFCRA Annual Report 2014
P. 56
es to the Financial
Statements
FOR THE YEAR ENDED 31 DECEMBER 2014
Financial liabilities at amortised of the QFC Regulatory Authority, 4.9 Appropriations from the
cost (initial recognition and the Regulatory Authority has Government
measurement) been admitted to the pension
The QFC Regulatory Authority fund operated by the General Appropriations from the
initially recognises financial Retirement and Social Insurance Government are recognised at
liabilities on the date that they are Authority (GRSIA) on 26th January their fair value when there is a
originated. These financial liabilities 2011. reasonable assurance that the
are recognised initially at fair All Qatari employees must appropriations will be received by
value plus any directly attributable contribute 5%, and the Regulatory the QFC Regulatory Authority, and
transaction costs for amounts to Authority 10%, of an employee’s are recognised in the statement of
be paid in the future for goods and pensionable income. The activities over the period necessary
services received, whether or not Regulatory Authority’s contribution to match them with the costs that
billed by the supplier. Subsequent to is recognized as an expense in the they are intended to compensate.
initial recognition, financial liabilities Statement of Activities. The excess appropriations provided
are measured at amortised cost 4.6 Fee income by the Government are treated as
using the effective interest method. Fee income arising on application assistance received in advance
Derecognition of financial liabilities processing is non-refundable under accounts payable and
The QFC Regulatory Authority and accordingly is recognised as accrual and are carried forward to
derecognises a financial liability income when received. Annual next year.
when its contractual obligations are licence fees are recognised as 4.10 Foreign currencies
discharged, cancelled or expired. income on a straight line basis over Transactions in foreign currencies
Offsetting the period to which they relate. are translated into functional
Financial assets and liabilities 4.7 Financial penalties currency and recorded at rates of
are offset and the net amount Under the Financial Services exchange existing at the date of
presented in the statement of Regulations (FSR), the QFC the transaction. Monetary assets
financial position when, and Regulatory Authority has the power and liabilities denominated in
only when, the QFC Regulatory to impose financial penalties foreign currencies are translated
Authority has a legal right to offset where it considers that a Person (as into functional currency at the rates
the amounts and intends either to defined in the FSR) has contravened of exchange ruling on the reporting
settle on a net basis or to realise a relevant requirement set out date. Realised and unrealised
the asset and settle the liability in Article 84 (1) of the FSR. The exchange gains and losses are
simultaneously. principles to be followed by included in the statement of
4.4 Provisions the QFC Regulatory Authority in activities.
Provisions are recognised when the determining the amount of any 4.11 Provisions
QFC Regulatory Authority has an financial penalty to be imposed Provisions are recognised when
obligation (legal or constructive) in respect of such contraventions the QFC Regulatory Authority has
arising from a past event, and the are set out in the QFC Regulatory a present legal or constructive
costs to settle the obligation are Authority’s Financial Services obligation as a result of past events
both probable that an outflow of (Financial Penalties and Public and it is probable that an outflow
economic benefits will be required Censures) Policy 2009. The financial of resources embodying economic
to settle the obligations and able to penalties are accounted on an benefits will be required to settle
be reliably measured. accrual basis on the date stipulated the obligation and, further, that a
4.5 Retirement benefit costs in the order and the income is reliable estimate of the amount of
Consequent to the Council of reported in the statement of the obligation can be made.
Ministers decision no. (11) of 2011, activities. 4.12 Operating leases
regarding the application of the 4.8 Interest income Operating lease payments are
provisions of the Retirement and Interest income is recognised on recognised in the profit or loss on a
Pension Law no. (24) of 2002 (the accrual basis, using the effective straight line basis over the term of
Law), for all Qatari employees interest rate method. the lease.
56 ANNUAL REPORT 2014
Statements
FOR THE YEAR ENDED 31 DECEMBER 2014
Financial liabilities at amortised of the QFC Regulatory Authority, 4.9 Appropriations from the
cost (initial recognition and the Regulatory Authority has Government
measurement) been admitted to the pension
The QFC Regulatory Authority fund operated by the General Appropriations from the
initially recognises financial Retirement and Social Insurance Government are recognised at
liabilities on the date that they are Authority (GRSIA) on 26th January their fair value when there is a
originated. These financial liabilities 2011. reasonable assurance that the
are recognised initially at fair All Qatari employees must appropriations will be received by
value plus any directly attributable contribute 5%, and the Regulatory the QFC Regulatory Authority, and
transaction costs for amounts to Authority 10%, of an employee’s are recognised in the statement of
be paid in the future for goods and pensionable income. The activities over the period necessary
services received, whether or not Regulatory Authority’s contribution to match them with the costs that
billed by the supplier. Subsequent to is recognized as an expense in the they are intended to compensate.
initial recognition, financial liabilities Statement of Activities. The excess appropriations provided
are measured at amortised cost 4.6 Fee income by the Government are treated as
using the effective interest method. Fee income arising on application assistance received in advance
Derecognition of financial liabilities processing is non-refundable under accounts payable and
The QFC Regulatory Authority and accordingly is recognised as accrual and are carried forward to
derecognises a financial liability income when received. Annual next year.
when its contractual obligations are licence fees are recognised as 4.10 Foreign currencies
discharged, cancelled or expired. income on a straight line basis over Transactions in foreign currencies
Offsetting the period to which they relate. are translated into functional
Financial assets and liabilities 4.7 Financial penalties currency and recorded at rates of
are offset and the net amount Under the Financial Services exchange existing at the date of
presented in the statement of Regulations (FSR), the QFC the transaction. Monetary assets
financial position when, and Regulatory Authority has the power and liabilities denominated in
only when, the QFC Regulatory to impose financial penalties foreign currencies are translated
Authority has a legal right to offset where it considers that a Person (as into functional currency at the rates
the amounts and intends either to defined in the FSR) has contravened of exchange ruling on the reporting
settle on a net basis or to realise a relevant requirement set out date. Realised and unrealised
the asset and settle the liability in Article 84 (1) of the FSR. The exchange gains and losses are
simultaneously. principles to be followed by included in the statement of
4.4 Provisions the QFC Regulatory Authority in activities.
Provisions are recognised when the determining the amount of any 4.11 Provisions
QFC Regulatory Authority has an financial penalty to be imposed Provisions are recognised when
obligation (legal or constructive) in respect of such contraventions the QFC Regulatory Authority has
arising from a past event, and the are set out in the QFC Regulatory a present legal or constructive
costs to settle the obligation are Authority’s Financial Services obligation as a result of past events
both probable that an outflow of (Financial Penalties and Public and it is probable that an outflow
economic benefits will be required Censures) Policy 2009. The financial of resources embodying economic
to settle the obligations and able to penalties are accounted on an benefits will be required to settle
be reliably measured. accrual basis on the date stipulated the obligation and, further, that a
4.5 Retirement benefit costs in the order and the income is reliable estimate of the amount of
Consequent to the Council of reported in the statement of the obligation can be made.
Ministers decision no. (11) of 2011, activities. 4.12 Operating leases
regarding the application of the 4.8 Interest income Operating lease payments are
provisions of the Retirement and Interest income is recognised on recognised in the profit or loss on a
Pension Law no. (24) of 2002 (the accrual basis, using the effective straight line basis over the term of
Law), for all Qatari employees interest rate method. the lease.
56 ANNUAL REPORT 2014
