Page 108 - Annual Report 2019

105 ANNUAL REPORT 2019 QFC REGULATORY AUTHORITY FINANCIAL STATEMENTS

Notes to the Financial Statements
At 31 December 2019

1. Activities 2. Economic Dependency 3. Basis of preparation and
The Qatar Financial Centre (QFC) was established by the The QFC Regulatory Authority is dependent on significant accounting policies
State of Qatar pursuant to Law No. 7 of 2005 to attract appropriations from the Government of the State of
international financial institutions and multinational Qatar to fund its operating and capital expenditure. 3.1 Basis of preparation
corporations to establish business in international
banking, financial services, insurance, corporate head During the year, the government provided the QFC Statement of compliance
office functions and related activities within Qatar. Regulatory Authority with appropriations amounting The financial statements have been prepared
to USD 37,651 thousand (2018: USD 35,842 thousand), in accordance with International Financial
The Qatar Financial Centre is organised into four authorities: including appropriations received in advance USD 2,615 Reporting Standards (“IFRS”) issued by the
the QFC Authority (QFCA), the QFC Regulatory Authority thousand (2018: USD 2,721 thousand). After adjusting for International Accounting Standards Board
(QFC Regulatory Authority), QFC Civil and Commercial Court the movement in appropriations received in advance (“IASB”) and the applicable provisions of Qatar
(Court) and QFC Regulatory Tribunal (Tribunal). The QFCA, and appropriations receivable of USD 3,964 thousand Financial Centre Law No. 7 of 2005.
the QFC Regulatory Authority, the Court and Tribunal are (2018: USD 2,639), USD 39,082 thousand was recognised
independent of each other and the Government of Qatar. in the statement of comprehensive income for the year The financial statements have been prepared
ended 31 December 2019 (2018: USD 36,710 thousand). on the historical cost basis.
The QFC Regulatory Authority, the independent regulatory
body, regulates licenses and supervises financial services As per Article 14 of Qatar Financial Centre Law No. 7 of 2005, The functional currency of the QFC Regulatory
and other firms that conduct activities in, or from, the Qatar the QFC Regulatory Authority has the right to retain any Authority is Qatari Riyals (“QAR”). However, these
Financial Centre. The registered office of the QFC Regulatory excess appropriations provided by the government; these financial statements have been presented in
Authority is located at P.O. Box 22989, Doha, State of Qatar. appropriations have been treated as part of retained surplus. United States Dollars (“USD”), which is the QFC
Regulatory Authority’s presentation currency.
These financial statements only relate to the income, expenses, There were no transfers to general reserve from retained
assets and liabilities of the QFC Regulatory Authority and surplus during the year (2018: USD 2 million). Any As the Qatari Riyal is pegged to the USD, the
do not extend to include any other bodies of the QFC. transfer of amounts to and from the general reserve balances in Qatari Riyals have been translated to
requires the approval of the Board of Directors. USD at the exchange rate of 3.645 Qatari Riyals to
The financial statements of the QFC Regulatory Authority as of USD and all financial information presented in USD
31 December 2019 were authorised for issue by the Board of has been rounded to the nearest thousand USD.
Directors on 8 July 2020.