Page 98 - ICD AR21 EN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
(CONTINUED)
8 MURABAHA FINANCING Murabaha financing
Accrued income
Less: deferred income
Less: allowance for credit losses (note 23)
183,380,408 2,635,731 (16,602,693)
169,413,446 (48,982,542)
168,381,254 3,011,811 (19,419,345)
151,973,720) (43,205,224)
31 December 2021 USD
31 December 2020 USD
120,430,904
108,768,496
All goods purchased for resale under Murabaha financing are made on the basis of specific purchase for subsequent resale to the customer. The promise of the customer is considered to be binding. Consequently, any loss suffered by the Corporation as a result of default by the customer prior to the sale of goods is charged to the customer.
Murabaha financing included financing of USD 60,412,619 (31 December 2020: USD 61,632,318) provided to related parties of the Corporation, over which the Corporation earned profit of USD 992,212 (31 December 2020: USD 1,338,150).
9 INSTALLMENT SALES FINANCING Installment sales financing
Accrued income
Less: deferred income
Less: allowance for credit losses (note 23)
354,750,576 4,529,604 (28,973,611)
330,306,569 (22,733,364)
409,587,357 5,538,191 (37,485,940)
377,639,608 (18,352,241)
31 December 2021 USD
31 December 2020 USD
307,573,205
359,287,367
All goods purchased for resale under installment sales financing are made on the basis of specific purchase for subsequent resale to the customers. The promise of the customer is considered to be binding. Consequently, any loss suffered by the Corporation as a result of default by the customer prior to the sale of goods is charged to the customer.
Installment sales financing included financing of USD 54,746,908 (31 December 2020: USD 9,414,338) provided to related parties of the Corporation, over which the Corporation earned profit of USD 1,374,213 (31 December 2020: USD 391,223).
96 ICD ANNUAL REPORT 2021