Page 116 - Annual Report 2019

113 ANNUAL REPORT 2019 QFC REGULATORY AUTHORITY FINANCIAL STATEMENTS

Offsetting of financial instruments Retirement benefit costs Current versus non-current classification
Financial assets and financial liabilities are offset Consequent to the Council of Ministers Decision No. (11) The QFC Regulatory Authority presents assets and
and the net amount is reported in the statement of of 2011, regarding the application of the provisions of the liabilities based on current/non-current classification.
financial position if there is a currently enforceable Retirement and Pension Law No. (24) of 2002 (“the Law”), An asset is classified as current when it is:
legal right to offset the recognised amounts and there for all Qatari employees of the QFC Regulatory Authority, • Expected to be realised or intended to be sold
is an intention to settle on a net basis, to realise the the QFC Regulatory Authority was admitted to the pension or consumed in a normal operating cycle;
assets and settle the liabilities simultaneously. fund operated by the General Retirement and Social • Held primarily for the purpose of trading;
Insurance Authority (GRSIA) on 26 January 2011. All Qatari • Expected to be realised within twelve
Cash and cash equivalents employees must contribute 5%, and the QFC Regulatory months after the reporting period; or
Authority 10%, of an employee’s pensionable income. The • Cash or cash equivalent unless restricted from
Cash and cash equivalents comprise bank balances and QFC Regulatory Authority’s contribution is recognised as being exchanged or used to settle a liability for at
deposits with banks held for the purpose of meeting short- an expense in the statement of comprehensive income. least twelve months after the reporting period.
term cash commitments that are readily convertible to a
known amount of cash and subject to insignificant risk of All other assets are classified as non-current.
changes in value. For the purpose of the statement of cash Employees’ end of service benefits
flows, cash and cash equivalents consist of bank balances and The QFC Regulatory Authority provides end of service benefits A liability is current when:
short-term deposits with a maturity of three months or less. to its employees. The entitlement to these benefits is based • It is expected to be settled in a normal operating cycle;
upon the employee’s final salary and length of service, subject • It is held primarily for the purpose of trading;
Provisions to the completion of a minimum service period from 1 January • It is due to be settled within twelve months after the
2017. The end of service benefit is payable upon resignation
Provisions are recognised when (a) the QFC Regulatory or termination of the employee. The expected costs of these reporting period; or
Authority has a present obligation (legal or constructive) as benefits are accrued over the period of employment. • There is no unconditional right to defer the settlement of the
a result of a past event, (b) it is probable that an outflow of liability for at least twelve months after the reporting period.
resources embodying economic benefits will be required to
settle the obligation, and (c) a reliable estimate can be made Foreign currencies The QFC Regulatory Authority classifies all other liabilities
of the amount of the obligation. When the QFC Regulatory Transactions in foreign currencies are recorded at the as non-current.
Authority expects some or all of a provision to be reimbursed, rate ruling at the date of the transaction. Monetary
the reimbursement is recognised as a separate asset, but assets and liabilities denominated in foreign currencies
only when the reimbursement is virtually certain. The are retranslated at the rate of exchange ruling at the
expense relating to a provision is presented in the statement settlement or reporting date. All differences are taken
of comprehensive income net of any reimbursement. to the statement of comprehensive income.

If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to
the passage of time is recognised as a finance cost.