Page 121 - Annual Report 2016 EN

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Impairment of non-financial assets Foreign currencies
The QFC Regulatory Authority assesses at each reporting date Transactions in foreign currencies are recorded at the rate ruling
whether there is an indication that an asset may be impaired. If at the date of the transaction. Monetary assets and liabilities
any indication exists, or when annual impairment testing for an denominated in foreign currencies are retranslated at the rate of
asset is required, the QFC Regulatory Authority estimates the asset’s exchange ruling at the settlement or reporting date. All differences
recoverable amount. An asset’s recoverable amount is the higher are taken to the statement of comprehensive income.
of an asset’s fair value less costs to sell and its value in use and is
determined for an individual asset, unless the asset does not gen- Operating leases
erate cash inflows that are largely independent of those from other Operating lease payments are recognised in the statement of
assets or groups of assets. Where the carrying amount of an asset comprehensive income on a straight line basis over the term of
exceeds its recoverable amount, the asset is considered impaired the lease.
and is written down to its recoverable amount. In assessing value in
use, the estimated future cash flows are discounted to their present
value using a discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset. In
determining fair value less costs to sell, an appropriate valuation
model is used.

Cash and cash equivalents
Cash and cash equivalents comprise cash balances and deposits
with banks held for the purpose of meeting short-term cash com-
mitments that are readily convertible to a known amount of cash
and subject to insignificant risk of changes in value.
Provisions
Provisions are recognised when the QFC Regulatory Authority has
an obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic ben-
efits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation.

Retirement benefit costs
Consequent to the Council of Ministers decision No. (11) of 2011,
regarding the application of the provisions of the Retirement and
Pension Law No. (24) of 2002 (the Law), for all Qatari employees of
the QFC Regulatory Authority, the Regulatory Authority has been
admitted to the pension fund operated by the General Retirement
and Social Insurance Authority (GRSIA) on 26th January 2011.
All Qatari employees must contribute 5%, and the Regulatory
Authority 10%, of an employee’s pensionable income. The Regu-
latory Authority’s contribution is recognised as an expense in the
statement of comprehensive income.