Page 133 - ICD AR21 EN

32 COMMITMENTS
In the normal course of business, the Corporation is a party to financial instruments with off-statement of financial position risk. These instruments comprise commitments to make project related disbursements, equity contribution commitments and other items and are not reflected in the statement of financial position.
The Corporation uses the same credit control and management policies in undertaking off-statement of financial position commitments as it does for on-statement of financial position operations.
Ijarah Muntahia Bittamleek Murabaha financing Installment sales financing Equity investments
33 EFFECT OF NEW AND REVISED FINANCIAL ACCOUNTING STANDARDS
2,398,000
10,000,000
46,181,500
84,032,585 77,600,000
ANNEXES
31 December 2021 USD
31 December 2020 USD
44,729,678 - 89,324,826
142,612,085
211,654,504
The following new FASs, which became effective for annual periods beginning on or after 1 January 2021, have been adopted in these financial statements.
FAS 31 Investment Agency (Al‐Wakala Bi Al‐Istithmar)
The Corporation has adopted FAS 31 as issued by AAOIFI on 1 January 2021. This standard defines the accounting principles and reporting requirements for investment agency (Al-Wakala Bi Al-Istithmar) transactions and instruments, in the hands of both the principal and the agent. This standard shall be effective beginning on or after 1 January 2021, with early adoption permitted. The standard requires the principal to evaluate the nature of the investment as either a) a pass-through investment or b) Wakala venture.
In case of a pass-through investment approach, the principal shall initially recognize the assets underlying the Wakala arrangement in its books of account applying the initial recognition principles as applicable in line with respective FAS. The principal may opt to apply the Wakala venture approach if, and only if, the investment agency contract meets any of the conditions described below:
i) the instrument is transferable;
ii) the investment is made in a single asset (or pool of assets) where such asset(s) are subject to frequent changes throughout the term of the contract i.e., there are routine changes or replacements over the term of arrangement (unless it constitutes a business) at the discretion of the agent; or
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