Illustrative IPSAS Consolidated Financial Statements Consolidated Public Sector Entity (CPSE) Year ended 31 December 2012 Issued April 2013

Introduction This publication provides an illustrative set of entity financial statements prepared in accordance with International Public Sector Accounting Standards (IPSAS) based on the requirements of IPSAS for financial year ending 31 December 2012. It is probably also worthy to note that the IASB continues with its project to replace IAS 39 and that when that project is finished the IPSASB may change IPSAS 29 and 30. Consolidated Public Sector Entity (CPSE) is an existing preparer of IPSAS financial statements. The transitional provisions of each accounting standard have not therefore been covered. A first time adopter of IPSAS will need to ensure that where they have made use of the transitional provisions full disclosure is provided in the accounting policies and in the notes to the financial statements. A management commentary has not been provided and is not required by IPSAS. In part such a commentary would cover those matters dealt with in IPSAS 18 “Segment reporting” and IPSAS 24 “Presentation of Budget Information in Financial Statements.” Although CPSE does not publish its budget it has chosen to adopt IPSAS 24 in order to provide users of the financial statements a better understanding of CPSE’s financial performance and we strongly recommend that where this makes sense that public sector entities make this choice too. It is not intended for entities to use these financial statements as a definitive guide and entities should always seek advice and guidance from their professional advisors. In preparing these illustrative financial statements we have utilized EY’s publication “International Public Sector Accounting Standards Disclosure checklist”. The publication may be accessed by following the link “International Public Sector Accounting Standards Disclosure checklist and the updates to IPSAS; IPSAS 32 “Service concessions” and “Improvements to IPSAS 2011” both accessible here. We would very much like to receive feedback on these illustrative financial statements, particularly if you have thoughts on where they may be improved or may be more helpful. Should you wish to discuss any of the items raised in this document please contact the Accounting and Auditing Standards Desk Financial audit and Examination Group, Abu Dhabi Accountability Authority.

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The illustrative consolidated financial statements are written by the Accounting and Auditing Standards Desk (AASD) of the Financial Audit and Examination Group of the Abu Dhabi Accountability Authority (ADAA). All rights reserved.

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The illustrative consolidated financial statements are intended as information for the reader only and none of the content is intended as accounting advice. Entities should refer to ADAA direct if advice is required for a particular issue.

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Abu Dhabi Accountability Authority accepts no responsibility for loss or damage caused to any party who acts or refrains from acting in reliance on this publication, whether such loss is caused by negligence or otherwise.

Contents Consolidated Statement of Financial Position …………………………………………………………………………………….. 1 Consolidated Statement of Financial Performance …………………………………………………………………………….. 2 Consolidated Statement of Changes in Net Assets/Equity……………………………………………………………………..3 Consolidated Statement of Cash Flows.……………….………………………………………………………………….……….… 4 Consolidated statement of Comparison of Budget and Actual Amounts……………………………………………… 5 Notes to the Consolidated Financial Statements ………………………………….……………………………………………….6

Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012

Consolidated Statement of Financial Position 2012 AED

2011 AED

X X X X X X X

X X X X X X X

9 13 14 15 25

X X X X X X X

X X X X X X X X

16

X X

X X

16 24 17

X

X

X X X X X

X X X X X X

X X X X X X

X X X X X X

Notes ASSETS Current assets Cash and cash equivalents Receivables from exchange transactions Receivables from non-exchange transactions Inventories Prepayments Financial assets - available for sale Total current assets Non-current assets Receivables from exchange transactions Financial assets – Investments Intangible assets Property, plant and equipment Service concession assets Total non-current assets Total assets

8 9 10 11 12

LIABILITIES Current liabilities Payables under exchange transactions Total current liabilities Non-current liabilities Payables under exchange transactions Service concession liabilities Financial liabilities – borrowings Total non-current liabilities Provisions Total liabilities Total assets less total liabilities

18

NET ASSETS/EQUITY ATTRIBUTABLE TO THE OWNERS Capital contributed by…. Other reserves Accumulated surplus/(deficit) Minority interest Total net assets/equity

Additional line items should be presented on the face of the statement of financial position when such presentation is relevant to an understanding of the entity’s position.

The notes on pages XX to XX are an integral part of these consolidated financial statements. The consolidated financial statements on pages 1 to XX were authorised for issue by board of directors on (date) and were signed on its behalf by:

Print name Chief Executive Signature

Print name Finance Director Signature

Print name Chairman Signature

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012

Consolidated Statement of Financial Performance Continuing Operations Revenue Contribution from the Government of Abu Dhabi Transfers from other government entities Fees, taxes and fines Other operating revenue Total operating revenue Expenses General and administrative expenses Wages, salaries and employee benefits Supplies and consumables used Depreciation and amortization expense Impairment of property, plant and equipment Total operating expenses Interest income Finance costs Gains/(losses) from available-for-sale securities Total non-operating expenses Share of net surplus/(deficit) of associates and joint ventures Net surplus/(deficit) for the period from continuing operations Discontinued operation(s) Surplus/(deficit) from discontinued operation(s) for the period Net surplus/(deficit) for the period

2012 AED

2011 AED

19 19 20 21

X X X X X

X X X X X X

22

(X) (X) (X) (X) (X) X X (X) X X X X X X Nil

(X) (X) (X) (X) (X) X X (X) X X X X X X Nil

(X) (X) Nil

(X) (X) Nil

Notes

14,15 23 24

Attributable to: The Government (the Owner of the controlling entity) Minority interests

If expenses are classified by ‘function’ then classification by ‘nature’ must be provided in the notes. It is highly unlikely that a government entity will record a surplus for the year due to any surplus being repayable to the government via an automatic deduction from the following year’s budget. It is possible however that a deficit may be recorded for example if an entity has incurred expenses higher than its current year budget, although this then raises other governance questions. If a surplus or a deficit is being recorded please call ADAA to discuss.

The notes on pages XX to XX are an integral part of these consolidated financial statements.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012

Consolidated Statement of Changes in Net Assets/Equity

Balance at 31 December 2011 Changes in net equity for 2012 Equity contributed during the year Valuation gains and losses on available for sale securities Share of changes recognized directly in associates net assets/equity Total surplus/(deficit) for the period Balance at 31 December 2012 1

Contributed Capital AED X

Other 1 Reserves AED X

Accumulated Surpluses (Deficits) AED Nil

Total

Minority interest

AED X

AED X

X

X X

X

Total net assets/ equity AED X

X

X X Nil Nil

X X

X

Nil X

X

X Nil X

Total AED X

Minority interest AED X

Total net assets/ equity AED X

other reserves are analyzed into their components, if material

Balance at 31 December 2010 Changes in net equity for 2011 Equity contributed during the year Valuation gains and losses on available for sale securities Share of changes recognized directly in associates net assets/equity Total surplus/(deficit) for the period Balance at 31 December 2011

Contributed Capital AED X

Other 1 Reserves AED X

Accumulated Surpluses (Deficits) AED Nil

X

X X

X X

X X

X X Nil Nil

Nil X

X X

X

X X Nil X

The notes on pages XX to XX are an integral part of these consolidated financial statements. It is highly unlikely that a government entity will record a surplus for the year due to any surplus being repayable to the government via an automatic deduction from the following year’s budget. It is possible however that a deficit may be recorded for example if an entity has overspent its current year budget, although this then raises other governance questions. If a surplus or deficit is being recorded please call ADAA to discuss.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012

Consolidated Statement of Cash Flows Notes

2012

2011

AED

AED

CASH FLOWS FROM OPERATING ACITIVITIES Surplus/ (deficit) for the period (delete if nil) Adjustments for Non cash Movements Interest income Finance costs (Gains)/losses from available-for-sale securities Depreciation Amortization Decrease/increase in provision for receivables Decrease/increase in current financial liabilities Decrease/increase in provisions Gains/Losses on sale of property, plant and equipment Decrease/increase in other current assets Decrease/increase in receivables Decrease/increase in inventories Decrease/increase in prepayments Non cash movement on the Government of Abu Dhabi Account Net cash flows from operating activities

X

X

(X) X (X) X X X X X X X X X X X X

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Purchase of financial assets Predetermined series of payments (Service concession assets) Purchase of investments Proceeds from sale of financial assets Proceeds from sale of investments Dividends received Net cash flows from investing activities

X X X X X X X X X X X

(X) X X X X X X X X X X X X X X X X X X X X X X X X X X X

CASH FLOWS FROM FINANCING ACTIVITIES Interest paid on borrowings Proceeds from financial liabilities – borrowings

(X) X

(X) X

Repayment of financial liabilities - borrowings

(X)

(X)

Net cash flows from financing activities

X

X

Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents held in foreign currencies Cash and cash equivalents at the end of the financial year

X X

X X

X X

X X

8

The notes on pages XX to XX are an integral part of these consolidated financial statements.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012

Consolidated Statement of Comparison of Budget and Actual Amounts Final and Original Budget 2012 AED

Actual on comparable basis 2012 AED

Difference

X X X

X X X

X X X

X X X X X

X X X X X

X X X X X

X X X X

X X X X

X X X X

X

X

X

X X X X X

X X X X X

X X X X X

Capital expenditure and other Motor vehicles Furniture and office equipment Computer equipment Leasehold improvements Intangible assets Investments Other assets Total capital expenditure and other

X X X X X X X X X

X X X X X X X X X

X X X X X X X X X

Total

X

X

X

Salaries, wages and other benefits Basic salary and other allowances Tuition allowance Contributions to pension fund and retirements benefit plan End of service benefits Medical insurance Staff training Other expenses Total salaries, wages and other benefits Operating expenditure Recruitment fees Consultancy fees Office rent and other related expenses Motor vehicles expenses (insurance, maintenance and fuel) Operation and maintenance of computers, furniture and office equipment Books and professional subscription Advertising and corporate identity expenses Business travel expenses Miscellaneous expenses Total operating expenditure

2012 AED

The notes on pages XX to XX are an integral part of these consolidated financial statements. The budget and the consolidated financial statements are prepared on a different basis. The statement of comparison of budget and actual amounts above is prepared on the same basis as the budget. Additional information about the budget and a reconciliation of amounts as per the above statement and the actual amounts in the statement of cash flows is disclosed in note XX to the financial statements. Budget compared to actual spend is only required to be disclosed by IPSAS 24 when budgets are publically available. CPSE has chosen to disclose this information voluntarily to enhance the transparency of its financial statements and the accountability of management for delivering the CPSE services.

Note: the above statement should be represented according to the names and classifications approved in CPSE statement of budget

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012

Notes to the consolidated financial statements 1

GENERAL INFORMATION Consolidated Public Sector Entity (“CPSE” or “the Group”) comprises independent government entities established in accordance with Law number X in the year 200X. CPSE’s principal activities are …… CPSE’s registered office is…..

2

STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION The consolidated financial statements of CPSE have been prepared in accordance with and comply with International Public Sector Accounting Standards (IPSAS). The consolidated financial statements are presented in United Arab Emirates Dirham (AED), which is the functional currency of CPSE. The accounting policies have been consistently applied to all the years presented. The consolidated financial statements have been prepared on the basis of historic cost modified for the revaluation of available for sale securities. The cash flows statement is prepared using the indirect method. The consolidated financial statements are prepared on an accrual basis.

3

KEY JUDGEMENTS AND SOURCES OF ESTIMATION UNCERTAINTY The preparation of consolidated financial statements requires Judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The key judgements management has made in preparing the consolidated financial statements are as follows: (a) Available for sale securities are realisable at their current market values. (b) The lives of intangible assets and property, plant and equipment are at least that set out in note X. (c) Inventory provision. (d) Bad debts on receivables. Key estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The key estimate management has made in preparing the consolidated financial statements concerns the impairment provision for receivables as set out in note X.

4

ADOPTION OF NEW AND REVISED STANDARDS State the impact of new and revised standards adopted during the year and the expected impact of new and revised standards not yet adopted. Disclosure should advise whether the impact is likely to be material or not and if it is material the impact should be quantified. CPSE has adopted IPSAS 28 and IPSAS 30 which supersedes IPSAS 15 “Financial instruments: Disclosure and Presentation and PSE has elected to early adopt IPSAS 32” Service Concession Arrangements: Grantor

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 5

SIGNIFICANT ACCOUNTING POLICIES

5.1

Consolidation

5.1.1

Controlled entities (subsidiaries) The controlled entities are all entities (including special purpose entities) over which CPSE has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether CPSE controls another entity. The controlled entities are fully consolidated from the date on which control is transferred to CPSE. They are de-consolidated from the date that control ceases. Inter-group transactions, balances and unrealised gains on transactions between inter-group transactions are eliminated, unrealised losses are also eliminated. Accounting policies of controlled entities are consistent with the policies adopted by CPSE.

5.1.2

Transactions and minority interests CPSE applies a policy of treating transactions with minority interests as transactions with external parties. Disposals to minority interests result in gains and losses for CPSE and are recorded in the consolidated statement of financial performance. Purchases from minority interests result in goodwill, being the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the controlled entity.

5.2

Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank, deposits on call and highly liquid investments with an original maturity of 3 months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

5.3

Receivables from exchange transaction and non-exchange transactions Receivables from exchange transactions are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. A provision for impairment of receivables is established when there is objective evidence that CPSE will not be able to collect all amounts due according to the original terms of the receivables. Receivables from non-exchange transactions comprises; fees, taxes and fines (and any penalties associated with these activities) as well as social benefit receivables that do not arise out of a contract. These receivables are initially assessed at nominal amount or face value; that is, the receivable reflect the amount of tax owed, levy, fine charged, or social benefit debt payable. These receivables are subsequently adjusted for penalties as they are charged, and tested for impairment. Interest and penalties charged on tax receivables are presented as tax revenue in the statement of financial performance.

5.4

Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted average method. Inventories held for distribution for public benefit purposes are recorded at cost, adjusted where applicable for any loss of services potential.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 5.5

Financial assets

5.5.1

Loans to employees Loans to employees are provided to assist with housing support. Loans are repayable in 12 monthly installments.

5.5.2

Available for sale securities CPSE uses surplus cash to purchase short-term investments. These financial assets are classified at initial recognition as available-for-sale. Available-for-sale financial assets are included in noncurrent assets unless CPSE intends to dispose of the investment within 12 months of the reporting date. Regular purchases and sales of financial assets are recognized at fair value on the tradedate (the date on which CPSE commits to purchase or sell the asset) and subsequently at fair value with any resultant fair value gains or losses recognised in the statement of Net Assets/Equity. Realized gains and losses on sale of available-for-sale securities are recognized in the consolidated statement of financial performance as ‘gains and losses from available-for-sale securities.’ Impairment losses and interest on available-for-sale securities is calculated using the effective interest method and is recognized in the consolidated statement of financial performance as part of other income. The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active CPSE establishes fair value using valuation techniques. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models, making maximum use of market inputs and relying as little as possible on entity-specific inputs. CPSE currently has no unlisted investments. CPSE assesses at each statement of financial position date whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of equity securities classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized is recognized in the consolidated statement of financial performance.

5.6

Investments

5.6.1

Investments in associates CPSE’s investments in its associates are accounted for using the equity method of accounting. An associate is an entity over which CPSE has significant influence and that is neither a subsidiary nor a joint venture. Under the equity method, investments in associates are carried in the consolidated statement of financial position at cost plus post acquisition changes in CPSE’s share of net assets of the associate. The consolidated statement of financial performance reflects the share of the results of operations of the associates. Where there has been a change recognised directly in the equity of the associate, CPSE recognises its share of any changes and discloses this, when applicable, in the consolidated statement of changes in net assets/equity. Surpluses and deficits resulting from transactions between the Government and the associate are eliminated to the extent of the interest in the associate.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 5.6.2

Investments in joint ventures CPSE’s investments in its joint ventures are accounted for using the equity method of accounting. A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. Under the equity method, investments in joint ventures are carried in the consolidated statement of financial position at cost plus post acquisition changes in CPSE’s share of net assets of the joint venture. The consolidated statement of financial performance reflects the share of the results of operations of the joint venture. Where there has been a change recognised directly in the equity of the joint venture, CPSE recognises its share of any changes and discloses this, when applicable, in the consolidated statement of changes in net assets/equity. Surpluses and deficits resulting from transactions between CPSE and the joint venture are eliminated to the extent of the interest in the joint venture.

5.6.3

Impairment of Investments in associates and joint venture After application of the equity method, CPSE determines whether it is necessary to recognise an additional impairment loss of the CPSE’s investment in its associates and joint ventures. CPSE determines at each reporting date whether there is any objective evidence that the investment is impaired. If this is the case CPSE calculates the amount of impairment as being the difference between the recoverable value of the investment and the carrying value and recognises the amount in the consolidated statement of financial performance. Associates’ and Joint ventures’ accounting policies are consistent with those used by CPSE for like transactions and events in similar circumstances.

5.7

Intangible assets Intangible assets are stated at historical cost less accumulated amortization and any impairment losses. Amortization is provided over the estimated useful life using the straight line method. The estimated useful life for intangible asset classes is as follows: Software acquired externally Licenses and rights, copyrights and other intangible assets

5.8

3 years 4 years

Property, plant and equipment All property, plant and equipment are stated at historical cost less accumulated depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Where an asset (other than land) is acquired in a non-exchange transaction for nil or nominal consideration the asset is initially recognised at fair value, where fair value can be reliably determined and as income in the statement of financial performance (unless there are restrictions on the asset’s use in which case income is deferred). All land held by Government owned entities is not included in the entity’s financial statements unless that land is to be used for development purposes. This is because the Executive Council of Abu Dhabi controls all Government owned land. Government owned land is included in the Executive Council financial statements and in the Consolidated Government financial statements at a historic cost of nil.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to CPSE and the cost of the item can be measured reliably. The carrying amount of a replaced part is derecognized. All repair and maintenance is charged to the statement of financial performance during the financial period in which they are incurred. Depreciation on assets is charged on a straight-line basis at rates calculated to allocate the cost or valuation of the asset less any estimated residual value over its remaining useful life:

Buildings Machinery Vehicles Furniture, fittings and equipment Specific cultural and heritage assets Service Concession assets

Life 25-40 years 10-15 years 3-5 years 3-8 years unlimited 20 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset’s carrying amount is written down immediately to its recoverable amount or recoverable service amount if the asset’s carrying amount is greater than its estimated recoverable amount or recoverable service amount. 5.9 Service Concession Arrangement assets CPSE has adopted IPSAS 32 “Service Concession Arrangements – Grantor” and has reclassified certain assets from Property, Plant and Equipment to Service Concession Assets. The standard allows a choice of retrospective or prospective application. Because the fair value of assets previously transferred under Service Concession Arrangements is not reliably available CPSE has chosen to adopt the standard prospectively from 1 January 2012. Service Concession Assets are operated by third parties under the terms of Service Concession Arrangements. On reclassification the original service concession asset is measured at its fair value and any difference between its fair value and its book value is recognised in the Statement of Financial Performance. If the terms of the arrangement require CPSE to compensate the operator for the concession asset by making payments and the payments are separable between the asset and service portions of the payment then the fair value of the original service concession asset is the fair value of the asset portion of the payments. If however the asset and service portions of the payments are not separable, the fair value is determined using estimation techniques. Further information is provided in note 25. 5.10

Service Concession Arrangement liabilities When CPSE recognises a Service Concession Arrangement asset it also recognises a liability of an equal amount. The liability is split between a financial liability and a performance obligation. The financial liability arises from the payments due from CPSE under the terms of the Service Concession Arrangement and the performance obligation from the rights granted to the operator under the terms of the Service Concession Arrangement to earn revenues from the Service Concession Assets(s) or associated asset(s). Further information is provided in note 25.

5.11

Payables under exchange transactions Payables are recognized initially at fair value and subsequently measured at amortised cost using the effective interest method.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 5.12

Financial liabilities - borrowings Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of financial performance over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan. The fee is capitalized and amortized over the period of the facility to which it relates. Borrowings are classified as current liabilities unless CPSE has an unconditional right to defer settlement of the liability for at least 12 months after the statement of financial position date. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized and included in the cost of that asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. CPSE had no such qualifying assets during the year. All other borrowing costs are recognized as an expense in the period in which they are incurred.

5.13

Equity/management of capital CPSE was established in 20XX by Law number XX. On inception cash and other assets were transferred to CPSE by government and other government entities. CPSE considered AED 1 million of the assets transferred as equity and the balance of AED 200,000 to be deferred income to fund year 1 operations. In year 20XX as part of the Government’s Abu Dhabi 2030 plan CPSE was asked to expand its operations to provide services to the new Industrial City and to the Western Region. In consideration of this a further transfer of cash and assets was made. CPSE considered AED 5 million of the assets transferred as equity and the balance of AED 500,000 to be deferred income to fund operations. CPSE considers only its equity as capital the purpose of which is to fund CPSE’s core service potential and specialised long life assets in perpetuity. CPSE does not measure its capital efficiency by the payment of a ‘return’ on its equity to government however it does measure its service delivery and its capability to deliver its specialised services. The details of this are set out in the budget commentary in note 6.

5.14

Contribution from the Government of Abu Dhabi Government's contribution is recognized as revenue when received after deducting other income during the year. Any excess amount received is added to the Abu Dhabi government account as deferred income under current liabilities. In case of excess expenses over the received amount an amount due from the Government of Abu Dhabi under current assets is recognized.

5.15

Transfers from other government entities Revenues from non-exchange transactions with other government entities are measured at fair value and recognized on receipt of the asset (cash, goods, services and property) if it is free from conditions and it is probable that the economic benefits or service potential related to the asset will flow to the entity and can be measured.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 5.16

Fees, taxes and fines CPSE recognizes revenues from non-exchange transactions fees, taxes and fines when the event (specify event) occurs and the asset recognition criteria are met. Other non exchange revenues are recognized when it is probable that the future economic benefits or service potential associated with the asset will flow to the entity and the fair value of the asset can be measured reliably.

5.17

Other operating revenue Other operating revenue arises from exchange transactions in the ordinary course of CPSE’s activities. Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of CPSE’s activities. Revenue is shown net of tax, returns, rebates and discounts.

5.17.1 Rendering of services Revenue is generally recognized at the contractual rate. For time contracts, the stage of completion is measured on the basis of labor hours delivered as a percentage of total hours to be delivered. For material contracts, the stage of completion is measured on the basis of direct expenses incurred as a percentage of the total expenses to be incurred. Revenue from fixed-price contracts for delivering services is also recognized under the percentage-of-completion method. Revenue is generally recognized based on the services performed to date as a percentage of the total services to be performed. Revenue from variableprice contracts for delivering services is generally recognized in the period the services are provided, using a straight-line basis over the term of the contract. If circumstances arise that may change the original estimates of revenues, costs or extent of progress toward completion, estimates are revised. These revisions may result in increases or decreases in estimated revenues or costs and are reflected in income in the period in which the circumstances that give rise to the revision become known by CPSE. CPSE had no service contracts outstanding at 31 December 2012 or 2011. 5.17.2 Sales of goods Revenue from the sale of goods is recognized when the significant risks and rewards of ownership has been transferred to the buyer, usually when goods are delivered. 5.17.3 Other revenue Other revenue consists of gains/losses on disposal of property, plant and equipment. Any gain or loss on disposal is recognized at the date control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at that time. 5.18

Employee Benefits/Pension obligations CPSE makes pension and national insurance contributions on behalf of UAE and GCC citizens in accordance with Federal Law no. 2 of 2000. The contributions are treated as payments to a defined contribution pension plan. A defined contribution plan is a pension plan under which fixed contributions are paid into a separate pension entity fund. CPSE has no legal or constructive obligations to pay further contributions if the pension entity does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 CPSE provides end of service benefits for its expatriate employees. The entitlement to these benefits is based upon the employees’ length of service and completion of a minimum service period. The expected costs of these benefits are based on an actuarial assessment of the liabilities using the projected unit credit method and are accrued over the period of employment. The end of service benefits are not part of a funded plan. 5.19

Interest income Interest income is accrued using the effective interest rate method. The effective interest rate exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount. The method applies this rate to the principal outstanding to determine interest income each period.

5.20

Interest expense Interest expense is accrued using the effective interest rate method. The effective interest rate exactly discounts estimated future cash payments through the expected life of the financial liability to that liability’s net carrying amount. The method applies this rate to the principal outstanding to determine interest expense each period.

5.21

Leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the consolidated statement of financial performance on a straight-line basis over the period of the lease. CPSE does not have any finance leases.

5.22

Foreign currencies Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the consolidated statement of financial performance. CPSE does not currently have any hedging arrangements.

5.23

Financial risk management CPSE seeks to minimize its exposure to financial risk. The only financial assets that it may purchase are cash, or cash equivalents and listed equity investments. The only financial liabilities that it may have (other than payables under exchange transactions) are bank overdrafts and bank loans. (a) Currency risk CPSE manages its bank accounts in Dirham, which is the official currency of the United Arab Emirates. CPSE’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities (when revenue or expense is denominated in a different currency from the Group’s functional currency) and the Group’s net investments in foreign subsidiaries. Foreign exchange gains and losses resulting from settlement, or translation of year end monetary balances denominated in foreign currencies are recognized in the statement of financial performance.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 Foreign exchange gains and losses relating to borrowings, cash and cash equivalents are include within finance income or costs in the statement of financial position. All other exchange gains and losses are presented within “other (losses)/gains – net.” (b) Interest rate risk Interest rate risk arises from possible impact of changes in the interest rates on the value of financial instruments. The CPSE’s exposure to the risk of changes in market interest rates relates primarily to the CPSE’s long-term debt obligations with floating interest rates. The CPSE manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. CPSE’s policy is to keep between 40% and 60% of its borrowings at fixed rates of interest. To manage this, CPSE enters into interest rate swaps, in which CPSE agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. These swaps are designated to hedge underlying debt obligations. At 31 December 2012, after taking into account the effect of interest rate swaps, approximately 43% of the CPSE’s borrowings are at a fixed rate of interest (2010: 60%). At 31 December 2012, if interest rates on AED-denominated borrowings at that date had been X% higher/lower with all other variables held constant, post-tax profit for the year would have been X (2011: X) lower/higher, mainly as a result of higher/lower interest expense on floating rate borrowings; other components of equity would have been X (2012: X) lower/higher mainly as a result of a decrease/increase in the fair value of fixed rate financial assets classified as available-for-sale. (c) Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. CPSE is exposed to credit risk on its debtor accounts. CPSE seeks to reduce the credit risk by setting credit limits for debtors and monitoring existing outstanding debtor’s balances. (d) Financial guarantee contracts CPSE does not enter into financial guarantee contracts. Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the best estimate of the expenditure required to settle the present obligation at the reporting date and the amount recognised less cumulative amortisation. 5.24

Segment reporting A segment is a distinguishable activity or group of activities for which it is appropriate to separately report financial information to evaluate past performance in achieving objectives and in making decisions about future allocation of resources. The following paragraph is provided for information purposes only Segments are reported in a manner consistent with internal budgeting and reporting provided to the governing body and the senior manager. The governing body and the senior manager are responsible for allocating resources and assessing performance of the operating segments and are identified as the steering committee that makes strategic decisions.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 6

NOTES TO THE STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS (a) The Group’s budget is prepared on a commitment basis using a classification based on the nature of expenses and covers the same period (1 January to 31 December) as the financial statements. The budget was approved by (HH Abu Dhabi Crown Prince Chairman of the Abu Dhabi Executive Council), and was included in the Department budget in accordance with the Executive Council resolution number X meeting X/2012 issued on (Date). (b) CPSE’s budget is prepared on a different basis to the actual income and expenditure disclosed in the financial statements. The financial statements are prepared on accrual basis using a classification based on the nature of expenses in the statement of financial performance, whereas the budget is prepared on a commitment basis. The amounts in the financial statements were recast from the accrual basis to the commitment basis and reclassified by presentation to be on the same basis as the approved budget. A comparison of budget and actual amounts, prepared on a comparable basis to the approved budget, is then presented in the statement of comparison of budget and actual amounts. In addition to the Basis difference, adjustments to amounts in the financial statements are also made for differences in the formats and classification schemes adopted for the presentation of the financial statements and the approved budget. (c)

Timing differences occur when the budget period differs from the reporting period reflected in the financial statements. There are no timing differences for CPSE.

(d) Entity differences occur when the budget omits program/activity or an entity that is part of the entity for which the financial statements are prepared. There are no entity differences. (e) A reconciliation between the actual amounts on a comparable basis as presented in the statement of comparison of budget and actual amounts and the actual amounts in the statement of cash flows for the year ended 31 December 2012 is presented below. Operating AED

Investing AED

Financing AED

Total AED

Actual amount on comparable basis as presented In the budget and actual comparative statement Basis differences

X X

X X

X X

X X

Actual amount in the statement of cash flow

X

X

X

X

2012

(f)

Contribution from the Government of Abu Dhabi does not form part of the statement of comparison of budget and actual amounts and is reflected as Basis difference. Additions to property and equipment and intangible assets follow a different basis scheme in the statement of comparison of budget and actual amounts accordingly the same is also reflected as Basis difference. The details of Basis difference are as follows; Operating AED

Investing AED

Financing AED

Contribution received from Government of Abu Dhabi Purchase of property and equipment Purchase of intangible assets

X X X

X X X

Actual amount in the statement of cash flow

X

X

X X X X X

2012

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 (g) Entity differences occur when the budget omits programs / activities that CPSE undertakes during the period for which the financial statements are prepared, such as payments of housing loans to employees, revenue from services provided to non-subject entities and other income. The details of entity differences are as follows; Operating AED

Investing AED

Financing AED

Revenue from services provided to non subject entities and other income Employee housing loans, net

X X

X X

Actual amount in the statement of cash flow

X

X

X X X X

2012

(h) Explanation of material difference between actual amounts and budget The total budget surplus of AED XX million (after adjusting for the impact of commitments of 2012 paid in 2013) and individual surplus reported at each of the above defined budget chapter is primarily attributable to: 

Deferment of budgeted expenditure to 2012 AED.



Cost reductions AED.

X

Due to the current and past surplus reported and availability of cash and bank balances at the beginning of the year, the CPSE requested a contribution of AED XX million from the Department of Finance as opposed to an approved and available budget of AED XX million for the year 2012. (i) A reconciliation between the original and final budget: Note

Original budget AED

Final budget AED

Difference AED

a b b

X X X

X X X

X X X

X

X

X

2012 Total salaries, wages and other benefits Operating expenditure Capital expenditure and other Total

a. On 27 February 2012 an amount of AED XXX was appropriated to staff training under “salaries, wages and other benefit”. b. There is reclassification between advertising and corporate identity expenses under “operating expenditure” to leasehold improvement under “capital expenditure” amounting to AED XXX based on the approval from XXX.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012

Notes to the consolidated financial statements 7

CONTROLLED ENTITIES CPSE had the following ownership percentage in its domiciled controlled entities at the reporting dates: Ownership interest Name of entity

Country of incorporation

ABC

Abu Dhabi

2012 %

2011 %

30

30

Principal activity of subsidiaries is as follows: Name and state activity

8

CASH AND CASH EQUIVALENTS

Bank balances and cash Petty cash

2012 AED X X X

2011 AED X X X

An entity should disclose, together with a commentary by management in the notes to the financial statements, the amount of significant cash and cash equivalent balances held by the entity that are not available for use by the economic entity. CPSE’s bank balances amounting to AED XXX include an amount of AED XXX which must be used on infrastructure projects.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 9

RECEIVABLES FROM EXCHANGE TRANSACTIONS

Current receivables Amounts receivable from customers Amounts receivable from employees Other debtors, prepayments & accrued revenue Amounts due from related parties (note 18) Less: impairment provisions Total current receivables

2012 AED

2011 AED

X X X X (X) X

X X X X (X) X X

Non-current receivables Loans to Government Business Enterprises (GBE’s) Amounts due from related parties (note 18) Less: Impairment provisions Total non-current receivables Total receivables

X X (X) X

X X (X) X X X

X

X

Movement in impairment provision Balance at beginning of the year Amounts written off during the year Amounts recovered during the year Total current receivables

X X X X

X X X X

Ageing of receivables past due but not impaired Less than 6 months Between 6 months and one year More than one year Total

X X X X

X X X X X

Please refer to Note XX for the nature and extent of credit risk arising from receivables.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 10

RECEIVABLES FROM NON-EXCHANGE TRANSACTIONS 2012 AED

2011 AED

x x x (x) x

x x x (x) x

(x) x (x) (x)

(x) X (x) (x)

Current receivables Fees Taxes Fines Less: impairment provisions Total current receivables Movement in impairment provision Balance at beginning of the year Amounts written off during the year Amounts recovered during the year Total impairment provision

11

INVENTORIES

Materials Less: impairment provisions Total inventories

12

2012 AED X X (X) X

2011 AED X X (X) X

2012 AED

2011 AED

X X

X X

FINANCIAL ASSETS - AVAILABLE FOR SALE

Current financial assets At fair value: Shares in quoted entities; Abu Dhabi Stock Exchange Total financial assets

Financial assets comprise listed equity investments only. Fair value is based on a quoted market price. 13

INVESTMENTS

Investments in government Business Enterprises (GBE’s / SOE’s) Investments in associates Investments in joint ventures Bonds and capital notes

2012 AED X X X X X

2011 AED X X X X X

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 The investments in government Business Enterprises (GBE’s/SOE’s) are as follows:

Name of entity

Principal activity

Country of incorporation

Ownership interest 2012 2011 % % X X X X X

X X X X X

The investments in associates are as follows:

Name of entity

Principal activity

Country of incorporation

Ownership interest 2012 2011 % % X X X X X X X X X X

Published fair value 2012 2011 AED AED X X X X X X X X X X

The total assets, total liabilities, total revenues and surplus/ deficit of the associates are as follows: Name of entity

Total assets AED X X X X X

Total liabilities AED X X X X X

Total revenues AED X X X X X

Net surplus/(deficit) AED X X X X X

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 14

INTANGIBLE ASSETS 2012 Cost: As at 1 January 2012 Additions As at 31 December 2012 Accumulated depreciation: As at 1 January 2012 Depreciation for the year Impairment As at 31 December 2012 Net carrying amount: As at 31 December 2012 2011 Cost: As at 1 January 2011 Additions As at 31 December 2011 Accumulated depreciation: As at 1 January 2011 Depreciation for the year Impairment As at 31 December 2011 Net carrying amount: As at 31 December 2011

License AED

Software AED

Total AED

X X X

X X X

X X X

X X X X

X X X X

X X X X

X

X

X

X X X

X X X

X X X

X X X X

X X X X

X X X X

X

X

X

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 15

PROPERTY, PLANT AND EQUIPMENT

2012 Cost: As at 1 January 2012 Additions Disposals As at 31 December 2012 Accumulated depreciation: As at 1 January 2012 Depreciation for the year Impairment Disposals As at 31 December 2012 Net carrying amount: As at 31 December 2012 2011 Cost: As at 1 January 2011 Additions Disposals As at 31 December 2011 Accumulated depreciation: As at 1 January 2011 Depreciation for the year Impairment Disposals As at 31 December 2011 Net carrying amount: As at 31 December 2011

Buildings AED

Machinery AED

Vehicles AED

Furniture, fittings and equipment AED

Cultural and heritage assets AED

Total AED

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X

X

X

X

X

X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X

X

X

X

X

X

Depreciation expense of AED XX (2011: AED XX) has been charged in cost of goods sold AED XX (2011: AED XX) in selling and marketing costs and AED XX (2011: AED XX) in administrative expenses. Lease rentals amounting to AED XX (2011: AED XX) and AED XX (2011: AED XX) relating to the lease of machinery and property, respectively, are included in the statement of performance (note XX).

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 16

PAYABLES UNDER EXCHANGE TRANSACTIONS 2012 AED

2011 AED

X X X X X X

X X X X X X

Non-current payables Employees end of service benefits (see below) Amounts due to related parties (note 18) Other creditors, accruals and deferred income

X X X

X X X

Total payables

X

X

Employees end of service benefits Balance as at 1 January Charge for the year End of service benefits paid during the year Balance as at 31 December

X X X X

X X X X

2012 AED

2011 AED

Non-current Unsecured: At amortised cost : Advances from Bank Other [describe]

X X

X X

Secured At amortised cost : Other [describe] Total non-current interest bearing liabilities

X X

X X

Total interest bearing liabilities

X

X

Current payables Amounts payable to supplies Payroll creditors Other creditors, accruals and deferred income Amounts due to related parties (note 18) Government of Abu Dhabi account (note 18)

The charge for the year results mainly from current year service cost. 17

FINANCIAL LIABILITIES - BORROWINGS

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 The group has the following undrawn borrowing facilities: 2012 AED

2011 AED

X X

X X

X X X

X X X

Floating rate: Expiring within one year Expiring beyond one year Fixed rate: Expiring within one year Expiring beyond one year

The facilities expiring within one year are annual facilities subject to review at various dates during 2012. The other facilities have been arranged to help finance the proposed expansion of CPSE’s activities in Europe. 18

PROVISIONS – Note not provided

19

RELATED PARTY TRANSACTIONS Related party transactions represent transactions with the Government of Abu Dhabi, senior management of CPSE and entities in which they are principal owners or over which they exercise significant influence. The ultimate controlling party of CPSE is [State the higher authority] Transactions with related parties included in the statement of financial performance are as follows: Transactions with related parties in the year ended 31 December 2012:

Entity A Entity B Contribution to AD pension fund

Rents received / paid AED 2012

Other amounts paid to SPE AED 2012

Other amounts received by SPE AED 2012

X X X X

X X X X

X X X X

2011 AED

2011 AED

2011 AED

X X X X

X X X X

X X X X

Transactions with related parties in the year ended 31 December 2011:

Entity A Entity B Contribution to AD pension fund

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 At the end of the year the following unsecured balances were outstanding: Amounts due to SPE AED 2012

Amounts due from SPE AED 2012

Amounts owed by Department AED 2011

Amounts owed to Department AED 2011

X X X

X X X

X X X

X X

X X X

X X X

X X X

X X

Current Entity A Entity B

Non-current Entity C Entity D

Government of Abu Dhabi account

Contribution from the Government of Abu Dhabi Transfers from other Government Entities (List significant transactions) Movement on the Government of Abu Dhabi account is as follows; Balance at 1 January Contribution received during the year Contribution recognized as revenue Balance at 31 December

2012 AED X X

2011 AED X -

X X (X) X

X X X (X) X

Compensation of key management personnel Key management personnel comprise the Chairman, the Executive Directors and the Department Heads. The remuneration of key management and their number are as follows:

20

2012 AED

2011 AED

Salaries and other benefits Employees’ end of service benefits

X X

X X

Number of key management personnel

X

X

2012 AED

2011 AED

X X X X

X X X X

FEES, TAXES AND FINES

Fees Taxes Fines Total

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 21

OTHER OPERATING REVENUE

Charges for goods and services Other (aggregate of immaterial items) Total

22

X X X

X X X

2012 AED

2011 AED

X X X X X X X X

X X X X X X X X

2012 AED

2011 AED

X X X

X X X

2012 AED

2011 AED

X X X X X

X X X X X

INTEREST INCOME

Finance income: Interest revenue: Interest on bank deposits Interest from investments Total

24

2011 AED

GENERAL AND ADMINISTRATIVE EXPENSES

Business travel Recruitment fees Consultancy fees Rent Telephone and internet Computer maintenance Other expenses Total

23

2012 AED

FINANCE COSTS

Interest expense on: Leasing Borrowings Bank charges Other Total

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 25

SERVICE CONCESSION ARRANGEMENTS a)

On 1 February 20XX CPSE entered into a service concession agreement with Local Entity to construct a toll road near one of the PSE’s island operations. The construction of the toll road commenced in February 20XX and was completed and available for use on 30 September 20XX. Under the terms of the agreement, Local Entity will operate and make the toll road available to the public for a period of twenty years, starting from 1 October 20XX. Local Entity will be responsible for any maintenance services required during the concession period. Local Entity has advised that it does not expect major repairs to be necessary during the concession period.

b)

CPSE will provide Local Entity a guaranteed minimum annual payment for each year that the toll road is in operation. Additionally, Local Entity has been granted the right to charge users a fee for using the toll road, which Local Entity will collect and retain; however, this fee is capped to a maximum amount as stated in the service concession agreement. The usage fees collected and earned by Local Entity are in addition to the guaranteed minimum annual payment to be received from CPSE. At the end of the concession period the toll road will become the property of CPSE and Local Entity will have no further involvement in its operation or maintenance requirements.

c)

The service concession agreement does not contain a renewal option. The standard rights of CPSE to terminate the agreement include poor performance by Local Entity and in the event of a material breach in the terms of the agreement. The standard rights of Local Entity to terminate the agreement include failure of CPSE to make payment under the agreement, a material breach in the terms of the agreement, and any changes in law that would render it impossible for Local Entity to fulfill its requirements under the agreement.

SERVICE CONCESSION ARRANGEMENT ASSETS Fair value of service concession asset Service concession asset – base layers Service concession asset – original surface layer Fair value of service payments Service concession asset – replacement surface layer Total Service concession asset

SERVICE CONCESSION ARRANGEMENT LIABILITIES Fair value of performance obligation Balance brought forward Liability recognized along with initial service concession asset Finance charge added to liability prior to payments being made Portion of predetermined series of payments that reduces the liability Fair value of liability Liability recognized along with replacement surface layers Total Service concession liability

2012 AED

2011 AED

X X

X X

X

X

X

X

2012 AED

2011 AED

X X X X

X X X X

X X

X X

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 26

SEGMENTAL REPORTING Provide a description of CPSE’s activities and information as follows:

26.1 Revenue and expenses Segment A

Revenue Contribution from the Government of Abu Dhabi Transfers from other government entities Fees, taxes and fines Other operating revenue Total operating revenue EXPENSES General and admin expenses Wages, salaries and employee benefits Supplies and consumables used Depreciation and amortisation expense Impairment of property plant and equipment Total operating expenses Interest income Finance costs Gains/(losses) from available-for-sale securities Total non-operating revenue/(expenses) Share of net surplus/(deficit) of associates and joint ventures Total expenses Net surplus/(deficit) for the period

26.2

Segment B

Other

Eliminations

2012 AED

2011 AED

2012 AED

2011 AED

2012 AED

2011 AED

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

(X) (X) (X) (X) (X) X (X) (X) (X) X

(X) (X) (X) (X) (X) X (X) (X) (X) X

(X) (X) (X) (X) (X) X (X) (X) (X) X

(X) (X) (X) (X) (X) X (X) (X) (X) X

(X) (X) (X) (X) (X) X (X) (X) (X) X

(X) (X) (X) (X) (X) X (X) (X) (X) X

(X) (X) X

(X) (X) X

(X) (X) X

(X) (X) X

(X) (X) X

(X) (X) X

2012 AED

X

Total

2011 AED

2012 AED

2011 AED

X

X X X X X

X X X X X (X) (X) (X) (X) (X) X (X) (X) (X) X (X) (X) X

X

X

X

X

(X) (X) (X) (X) (X) X (X) (X) (X) X

(X) X

(X) X

(X) (X) X

Assets and liabilities Segment A

Assets Current assets Non-current assets Total assets Liabilities Current liabilities Non-current liabilities Total liabilities

Segment B

Other

Eliminations

2012 AED

2011 AED

2012 AED

2011 AED

2012 AED

2011 AED

X X X

X X X

X X X

X X X

X X X

X X X

(X) (X) (X)

(X) (X) (X)

(X) (X) (X)

(X) (X) (X)

(X) (X) (X)

(X) (X) (X)

2012 AED

X

Total

2011 AED

2012 AED

2011 AED

X

X X X

X X X

(X) (X) (X)

(X) (X) (X)

Notes in addition to the above CPSE should disclose; o Capital expenditure for each segment. o The types of goods and services included in each reported service segment; o The composition of each reported geographical segment; and o If neither a service nor geographical basis of segmentation is adopted, the nature of the segment and activities encompassed by it.

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Consolidated Public Sector Entity (CPSE) IPSAS Consolidated financial statements For the year ended 31 December 2012 27

CONTINGENCIES AND COMMITMENTS CPSE has contingent liabilities in respect of legal claims arising in the ordinary course of operations. It has no contingent assets. Capital expenditure contracted for at the end of the reporting period but not yet incurred is as follows:

Property, plant and equipment Intangible assets Total

28

2012 AED

2011 AED

X X X

X X X

EVENTS AFTER THE REPORTING DATE Disclose the nature and an estimate of the financial effect of any significant non-adjusting events occurring after the year end date.

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