Strategic Roadmap and Financial Performance
Alternative Performance Measures | Explanation
Amanat assess the performance of the Group using a variety of alternative performance measures (APMs), including total
income and net profit presented on both a "core" and an "adjusted basis". A summary of the statutory IFRS and alternative
approaches is included below:
Statutory IFRS
Alternative Performance Measures - Non IFRS
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Control is achieved when the Group is exposed, or has rights to,
variable returns from its involvement with the investee and has the
ability to affect those returns through its power over the investee
Non-controlling interests i.e. minority stakes are presented separately
in equity in the consolidated statement of financial position and the
results and total comprehensive income attributable to the NCI is
disclosed in the consolidated statement of profit or loss and
consolidated statement of other comprehensive income, respectively
Investments in associates are accounted for using the equity method,
associates being those entities where over a 20% stake is held and /
or significant influence is exercised
Under the equity method on initial recognition the investment is
recognized at cost and then adjusted for the subsequent share of
profit or loss and OCI of the investee. Distributions received reduce
the carrying value
Investments where there is no significant influence or control,
generally where less than 20% stakes are held, are held at fair value
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Under the income and net profit approach the net profit of each
investment where control or significant influence is exercised is
proportionately consolidated e.g. AED 100 earned from a 35%
investment would be recognized as net profit of AED 35
Similarly AED 100 earned from a 75% investment would be
recognized as net profit of AED 75
Holding company revenues and expenses are recognized 100%
A standalone income statement and balance sheet is presented to aid
the understanding of the user
Net profit attributable to equity holders of the parent and overall net
profit is the same in both the statutory IFRS and APM measures
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