The consolidated financial statements
have been prepared in accordance with
International Financial Reporting Standards
and applicable requirements of the UAE laws.
been presented in United Arab Emirates
Dirhams and all values are rounded to the
nearest thousand (AED'000), except where
otherwise stated.
The consolidated financial statements have
been prepared under the historical cost
convention.
The consolidated financial statements
comprise the financial statements of the
PJSC and its subsidiaries as at 31 December
2009. The financial statements of the
subsidiaries are prepared for the same
reporting period as the PJSC, using
consistent accounting policies.
the financial statements of subsidiaries to
bring their accounting policies in line with
those used by the PJSC.
date of acquisition, being the date on which
the Group obtains control, and continue to be
consolidated until the date that such control
ceases. Control is achieved where the Group
has the power to govern the financial and
operating policies of an investee entity so as to
obtain benefits from its activities. In assessing
control, potential voting rights that presently
are exercisable are taken into account. All
intra-group balances, income and expenses
and unrealised gains or losses are eliminated
in full on consolidation.
profit or loss and net assets not held by the
Group and are presented separately in
consolidated statement of income and within
equity in the consolidated statement of
financial position, separately from parent
shareholders' equity.
financial statements requires management to
make judgments, estimates and assumptions
that affect the reported amounts of revenues,
expenses, assets and liabilities, and the
disclosure of contingent liabilities, at the
reporting date. However, uncertainty about
these assumptions and estimates could result
in outcomes that could require a material
adjustment to the carrying amount of the
asset or liability affected in the future.
In the process of applying the Group's
accounting policies, the management has
made the following judgment, apart from those
involving estimates, which has the most
significant effect on the amounts recognised in
the consolidated financial statements:
Classification of investments
At the time of acquisition of investments, the
management makes judgment, based on their
intention, of the nature of investment. The
classification of investment will change its
treatment in the financial statements.
Use of estimates
The preparation of the consolidated financial
statements, in conformity with International
Financial Reporting Standards, requires that
management make estimates and assumptions
that affect the amounts reported in the
consolidated
from these estimates. Estimates and their
underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting
estimates are recognised in the period in which
the estimates are revised and in any future
periods affected.
other key sources of estimation uncertainty at
the statement of financial position date, that
have a significant risk of causing a material
adjustment to the carrying amounts of assets
and liabilities within the next financial year are
discussed below:
accounting for contracting revenue. Use of
the percentage of completion method
requires the Group toaccuracy of this
estimate has a material impact on the amount
of revenue and related profits recognised.
Any revision to profit arising from changes in
estimates is accounted for in the period when
the changes become known.
periodically reviews estimated useful lives
and the depreciation method to ensure that
the method and period of depreciation are
consistent with the expected pattern of
economic benefits from the assets.
by recognising the acquiree's identifiable
assets, liabilities, and contingent liabilities
that satisfy the recognition criteria, at their fair
values on the date of acquisition. The Group
uses third party experts to establish the
estimated fair value of the acquiree's
property, plant and equipment, and
intangibles. The fair values of other assets,
liabilities and contingent liabilities are
estimated by the management based on the
discounted cash flow projections of future
expected cash inflows arising as a result of
realising such assets and cash outflows
expected on settlement of liabilities and
contingent liabilities.