Page 138 - Annual Report 2017

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NOTES TO THE FINANCIAL

STATEMENTS

At 31 December 2017

[1] ACTIVITIES [2] ECONOMIC DEPENDENCY [3] BASIS OF PREPARATION AND
SIGNIFICANT ACCOUNTING POLICIES Amendments to IAS 12 Income Taxes: Recognition of Deferred Tax
The Qatar Financial Centre (QFC) was established by the State of The QFC Regulatory Authority is dependent on appropriations from
Qatar pursuant to Law No. 7 of 2005 to attract international finan- the Government of the State of Qatar to fund its operating and 3.1 Basis of preparation Assets for Unrealised Losses
cial institutions and multinational corporations to establish business capital expenditure. Statement of compliance The amendments clarify that an entity needs to consider whether
in international banking, financial services, insurance, corporate During the year, the Government provided the QFC Regulatory The financial statements have been prepared in accordance with tax law restricts the sources of taxable profits against which it may
head office functions and related activities within Qatar. make deductions on the reversal of deductible temporary differ-
Authority with appropriations amounting to USD 36,954 thousand International Financial Reporting Standards (“IFRS”) issued by the
The Qatar Financial Centre is organised into four authorities, the (2016: USD 33,304 thousand), including appropriations received International Accounting Standards Board (“IASB”) and the appli- ence related to unrealised losses. Furthermore, the amendments
QFC Authority (QFCA), the QFC Regulatory Authority (QFC Reg- in advance USD 2,963 thousand (2016: USD 685 thousand). After cable provisions of Qatar Financial Centre Law No. 7 of 2005. provide guidance on how an entity should determine future tax-
ulatory Authority), QFC Civil and Commercial Court (Court) and adjusting for the movement in appropriations received in advance The financial statements have been prepared on the historical cost able profits and explain the circumstances in which taxable profit
QFC Regulatory Tribunal (Tribunal). The QFCA, the QFC Regulatory and appropriations receivable of USD 1,789 thousand (2016: USD basis. may include the recovery of some assets for more than their carry-
Authority, the Court and Tribunal are independent of each other 913), USD 35,780 thousand was recognised in the statement of com- ing amount. The QFC Regulatory Authority applied amendments
and the Government of Qatar. prehensive income for the year ended 31 December 2017 (2016: The functional currency of the QFC Regulatory Authority is Qatari retrospectively. However, their application has no effect on the
USD 33,837 thousand). Riyals (“QAR”). However, these financial statements have been pre- QFC Regulatory Authority’s financial position and performance as
The QFC Regulatory Authority, the independent regulatory body, sented in United States Dollars (“USD”), which is the QFC Regulatory the QFC Regulatory Authority has no deductible temporary differ-
regulates licenses and supervises financial services and other firms As per the Article 14 of Qatar Financial Centre Law No. 7 of 2005, Authority’s presentation currency. ences or assets that are in the scope of the amendments.
that conduct activities in, or from, the Qatar Financial Centre. The the QFC Regulatory Authority has the right to retain any excess Annual Improvements Cycle – 2014-2016
registered office of the QFC Regulatory Authority is located at P.O. appropriations provided by the Government; these appropriations As the Qatari Riyal is pegged to the USD, the balances in Qatari
Box 22989, Doha, State of Qatar. have been treated as part of retained surplus. Riyals have been translated to USD at the exchange rate of 3.645 Amendments to IFRS 12 Disclosure of Interests in Other Entities:
Qatari Riyals to USD and all financial information presented in USD Clarification of the scope of disclosure requirements in IFRS 12
These financial statements only relate to the income, assets and There were no transfers from/to the general reserve during the year has been rounded to the nearest thousand USD.
liabilities of the QFC Regulatory Authority and do not extend to (2016: Nil). Any transfer of amounts to and from the general reserve The amendments clarify that the disclosure requirements in IFRS
include any other bodies of QFC. requires the approval of the Board of Directors. 3.2 Changes in accounting policies and disclosures 12, other than those in paragraphs B10–B16, apply to an entity’s
New and amended standards and interpretations adopted by the interest in a subsidiary, a joint venture or an associate (or a portion
The financial statements of the QFC Regulatory Authority as of 31
December 2017 were authorised for issue by the Board of Directors QFC Regulatory Authority of its interest in a joint venture or an associate) that is classified (or
on 25 March 2017. The accounting policies adopted are consistent with those of the included in a disposal QFC Regulatory Authority that is classified) as
previous financial year, except for the following new and amended held for sale. As at 31 December 2017, these amendments did not
IFRS recently issued by the International Accounting Standards affect the QFC Regulatory Authority’s financial statements.
Board (IASB) and International Financial Reporting Interpretations
Committee (IFRIC) interpretations effective as of 1 January 2017.
The nature and the impact of each new standard and amendment
are described below:
Amendments to IAS 7 Statement of Cash Flows: Disclosure Initiative

The amendments require entities to provide disclosure of changes
in their liabilities arising from financing activities, including both
changes arising from cash flows and non-cash changes (such as
foreign exchange gains or losses).