| Notes forming part of accounts [line items] | | |
| Disclosure of notes and other explanatory information [text block] | | |
| Disclosure of general information about reporting entity [abstract] | | |
| Disclosure of general information about reporting entity [text block] | The insurance industry in Saudi Arabia is regulated by the Law on Supervision of Cooperative Insurance Companies (“Cooperative Insurance Law”) together with the Implementing Regulations (“Implementing Regulations”) promulgated by Royal Decree No. M32 dated 22 Jumad Thani 1424 corresponding to 21 August 2003. Supervision is under the auspices of the Saudi Arabian Monetary Authority ("SAMA" or "Regulator"). Arabian Shield Cooperative Insurance Company (“Company”) is a Saudi Joint Stock Company incorporated in Riyadh, Saudi Arabia through Ministerial Resolution issued on 19 May 2007 with Commercial Registration No. 1010234323 issued on 13 June 2007 following on from Royal Decree No. M60 dated 18 Ramadan 1427 corresponding to 11 October 2006. The Commercial Registration Certificate was amended with effect from 24 July 2018 to reflect the increase in share capital following the bonus share issue. The Company was listed on the Saudi Stock Exchange (Tadawul) on 26 June 2007. The registered address of the head office is as follows: 5th Floor, Cercon Building No. 15, Olaya Street, PO Box 61352, Riyadh 11565, Saudi Arabia. The principal activities for which the Company was licensed were the conducting of insurance and reinsurance business in general and medical classes in Saudi Arabia in accordance with License No. TMN/6/20079 issued on 11 September 2007 by SAMA and the License was renewed for three year periods on 10 August 2010, 07 July 2013 and 03 June 2016. SAMA gave approval to the Company to conduct business in the protection and savings class on 26 April 2018. At the Company’s request, SAMA approved an amendment to the License to exclude reinsurance business with effect from 30 September 2013. As per the Articles of Association ("Articles"), the Company may undertake all activities required to transact cooperative insurance operations and related activities and to invest its funds. Its principal lines of business include motor, medical, marine, property, engineering, casualty and protection and savings. In accordance with the Implementing Regulations, within six months from the date of publication of the Annual Financial Statements each year, the Board of Directors approve the distribution of the surplus from insurance operations as follows: The shareholders of the Company receive 90% of the surplus from insurance operations including any surplus from investment activities of the policyholders’ invested funds and the policyholders retain the remaining 10%. Any deficit arising on insurance operations is transferred to shareholders’ operations in full. The Company and its Shareholders own and retain custody of all net assets related to both Insurance Operations and Shareholders’ Operations and funds are allocated to Insurance Operations as required. The fiscal year of the Company runs from 1 January to 31 December. Cooperative insurance operations commenced with effect from 1 January 2009 following acquisition of the insurance portfolio and related business, assets and liabilities from Arabian Shield Insurance Company EC. The Ministry of Commerce and Investment implemented the new companies’ regulations with effect from 25 Rajab 1437H corresponding to 02 May 2016 (“Effective Date”) promulgated by Royal Decree No. M3 dated 28 Muharram 1437H corresponding to 10 November 2015 (“Companies’ Regulations”). The Companies’ Regulations replace the companies’ regulations promulgated by Royal Decree No. M6 dated 22 Rabi Al Awwal 1385H corresponding to 20 July 1965 and supersede all provisions that are inconsistent therewith. Companies existing as at the Effective Date shall make all necessary amendments to their Articles to ensure compliance with the Companies’ Regulations within a period of one year from the Effective Date. As of the date of approval of these Financial Statements the Company has completed all necessary amendments and is in full compliance with the Companies’ Regulations. | |
| Disclosure of basis of preparation of financial statements [text block] | The accounting policies, estimates and assumptions used in the preparation of the Financial Statements are consistent with those used for the year ended 31 December 2018 and with the exception of IFRS 16: Leases, no new or amended accounting policies or accounting standards were adopted by the Company during 2019. Financial Statements are prepared under the going concern convention using the accrual basis of accounting. The historical cost convention is followed except for the measurement at fair value of available for sale investments - see Note 5(r). Financial assets and financial liabilities are offset and the net amount reported only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the liabilities simultaneously. Income and expense are not offset unless required or permitted by an accounting standard or interpretation as specifically disclosed in the accounting policies. Presentation is in Saudi Riyals, the functional currency of the Company. All amounts are derived from Arabic and English computerised accounting records and except where otherwise indicated are rounded to thousands using the standard rounding convention. The statement of financial position is presented in order of liquidity but is not presented using a current / non-current classification. The table below identifies current and non-current assets and liabilities. Financial Assets: Current Non-current Cash and cash equivalents Property and equipment – net Short term fixed income deposits Intangible assets – net Premiums and reinsurers’ receivable – net Goodwill Reinsurers’ share of unearned gross premiums Statutory deposit Reinsurers’ share of outstanding gross claims Accrued income on statutory deposit Reinsurers’ share of gross claims incurred but not reported Deferred excess of loss expenses Deferred policy acquisition costs Deferred third party administrator expenses Deferred withholding tax Deferred regulators’ levies Investments Due from related parties – net Prepaid expenses and other assets Financial Liabilities: Accrued and other liabilities End-of-service indemnities Reinsurers' balances payable Accrued commission income payable to SAMA Unearned gross premiums Unearned reinsurance commission Outstanding gross claims Gross claims incurred but not reported Premium deficiency reserve Other technical reserves Due to related parties Accounts payable Withholding tax provision Regulators’ levies provision Policyholders’ surplus distribution payable Zakat Income tax The statements of financial position, statements of income and statements of comprehensive income and cash flows of the Insurance Operations and Shareholders’ Operations which are presented in Note 38 of the Financial Statements are not required by IFRS but have been provided as supplementary financial information to comply with the Implementing Regulations which require the clear segregation of the assets, liabilities, income and expenses of the Insurance Operations and the Shareholders’ Operations. The supplementary financial information referred to above reflects the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations. In preparing the Company-level Financial Statements in compliance with IFRS, the balances and transactions of Insurance Operations are amalgamated and combined with those of Shareholders’ Operations. Interoperation balances, transactions and unrealised gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for Insurance Operations and Shareholders’ Operations are uniform for like transactions and events in similar circumstances. | |
| Disclosure of statement of compliance [text block] | During the year ended 31 December 2019, Saudi Organization for Certified Public Accountants (SOCPA) issued a Circular No. 2019 / 23099 dated 26 Sha’aban 1440 (corresponding to 01 May 2019) and SAMA made subsequent communication referring to Royal Decree No. 36763 dated 03 Rajab 1440 (corresponding to 10 March 2019) relating to the accounting for zakat and income tax. The impact of the above are as follows: SAMA Circular No. 381000074519 dated 11 April 2017 relating to the accounting for zakat and income tax is no longer applicable with effect from 01 April 2019; and Zakat and income tax are to be accrued at each reporting date and recognized in the statement of income with a corresponding liability recognized in the statement of financial position in accordance with International Financial Reporting Standards (IFRS) and other standards and pronouncements endorsed by SOCPA. The Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other standards and pronouncements endorsed by SOCPA (collectively referred to as “IFRS as endorsed in KSA”) and comparatives have been restated accordingly (refer Note 4). | |
| Disclosure of new standards and amendments in standards [text block] | This standard was published in May 2017. It establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 – Insurance Contracts.The new standard applies to insurance contracts issued and to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts.It requires separating the following components from insurance contracts:i. Embedded derivatives if they meet certain specified criteria; and ii. Distinct investment components; and iii. Any promise to transfer distinct goods or non-insurance services. These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15). | |
| Disclosure of issued IFRS not yet adopted [text block] | In November 2018 IASB proposed a one year deferral of the effective date for IFRS 17 to 01 January 2022 along with a temporary exemption for insurers to apply IFRS 9 so that both IFRS 9 and IFRS 17 will be applied at the same time. The proposed deferral is subject to public consultation the outcome of which is expected to be published shortly. IFRS 9: Financial Instruments (including amendments to IFRS 4, Insurance Contracts) In July 2014, IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurement requirements for financial instruments, the introduction of an expected credit loss impairment model which will replace the incurred loss model of IAS 39 and new hedge accounting requirements. Under IFRS 9, all financial instruments will be measured at either amortized cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial instruments. The standard retains most of IAS 39 requirements for financial liabilities except for those designated at fair value through income statement whereby that part of the fair value changes attributable to own credit is to be recognized in other comprehensive income instead of the income statement. The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach. Temporary exemption from IFRS 9: In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments to IFRS 4 allow two options for insurers regarding adoption of IFRS 9: deferral approach or overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contracts standard or 01 January 2022. The overlay approach allows an entity to remove from the statement of income the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied. The Company is eligible to and has applied the deferral approach. The impact of the adoption of IFRS 9 on the Company’s Financial Statements will, to a large extent, have to take into account the interaction with the forthcoming accounting standard for insurance contracts and as such it is not possible to fully assess the effect of adoption of IFRS 9. IFRS 17: Insurance Contracts In May 2017 the IASB published IFRS 17 which applies to annual reporting periods on or after 01 January 2022 and replaces IFRS 4. The Company has decided not to adopt IFRS 17 early as would be permitted in certain circumstances. IFRS 17 applies to virtually all insurance contracts, reinsurance contracts and investment contracts with insurance benefits and discretionary participation features. The Company expects adoption of IFRS 17 to have a material impact on measurement and disclosure of insurance and reinsurance contracts that will affect the statement of income and statement of financial position. | |
| Disclosure of critical accounting judgements, estimates and assumptions, general [text block] | The preparation of Financial Statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies, the reported amount of assets and liabilities, contingent assets and liabilities, resultant provisions, changes in fair value and the reported amounts of income and expense. These judgements and estimates are based on the Company’s best knowledge of current events and actions and are continually evaluated and updated, however future events could result in outcomes requiring material adjustments to the reported amounts. In preparing the Financial Statements significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty including the risk management policies were the same as those that applied for the year ended 31 December 2018. The following judgments and estimates have the most significant effect on the amounts recognised. Impairment losses on receivables The Company assesses impairment for receivables that are individually significant and receivables included in a group of financial assets with similar credit risk characteristics. Receivables that are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not included in a collective assessment of impairment. This assessment of impairment requires judgment. In making this judgment, the Company establishes if there is objective evidence that all amounts due may not be collectible in accordance with the original terms of the contract and evaluates credit risk characteristics that consider past-due status being indicative of the ability to pay all amounts due as per contractual terms. Insurance contract liabilities For insurance contracts, estimates have to be made both for the expected ultimate cost of claims reported at the reporting date and for the expected ultimate cost of claims incurred but not yet reported (IBNR) at the reporting date. It can take a significant period of time before the ultimate claims cost can be established with certainty and for some type of policies IBNR claims form a significant part of the liability. The primary technique adopted by the Company in estimating the cost of reported and IBNR claims is that of using past claims settlement trends to predict future claims settlement trends. Historical claims development is analyzed by underwriting year, accident year and further analyzed by significant business lines and claim types. Large claims are usually separately addressed, either by being reserved at the face value of loss adjustor estimates or separately projected to reflect their future expected development. In most cases, no explicit assumptions are made regarding future rates of claims inflation or loss ratios. Instead, the assumptions used are those implicit in the historic claims development data on which the projections are based. Additional qualitative judgment is used to assess the extent to which past trends may not apply in future, (for example to reflect one-off occurrences, changes in external or other factors such as public attitudes to claiming, economic conditions, levels of claims inflation, judicial decisions and legislation, as well as internal factors such as portfolio mix, policy conditions and claims handling procedures) in order to arrive at the estimated ultimate cost of claims that present the likely outcome from the range of possible outcomes, taking into account all the uncertainties involved. In addition a range of technical methods are used by the Company’s actuaries to independently assess and critically review the estimates made by the Company. Prior claims estimates are continually reviewed and adjusted as claims develop. Insurance contract liabilities are not discounted for the time value of money as substantially all claims are expected to be paid within one year of the reporting date. The liabilities are derecognised when the obligation to pay a claim expires, is discharged or is cancelled. Impairment of financial instruments Financial instruments are considered impaired when it is determined there has been a significant or prolonged decline in fair value relative to cost. This determination requires judgement. In making this judgement factors are considered such as normal share price volatility, financial status of the investee including cash flow and sector and technology status and development. Fair value of financial instruments The fair value of financial instruments is based where possible on quoted prices for marketable securities. The fair value of commission bearing items is estimated based on discounted cash flows using commission rates for items with similar terms and risk characteristics. For financial instruments where there is no active market, fair value is determined by reference to the market value of similar financial instruments or where this cannot be determined is calculated using a variety of valuation techniques. The assumptions are taken from observable market data where possible and where this is not possible judgment is relied upon to establish fair values. | |
| Disclosure of basis of measurement [text block] | The accounting policies, estimates and assumptions used in the preparation of the Financial Statements are consistent with those used for the year ended 31 December 2018 and with the exception of IFRS 16: Leases, no new or amended accounting policies or accounting standards were adopted by the Company during 2019. Financial Statements are prepared under the going concern convention using the accrual basis of accounting. The historical cost convention is followed except for the measurement at fair value of available for sale investments - see Note 5(r). Financial assets and financial liabilities are offset and the net amount reported only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the liabilities simultaneously. Income and expense are not offset unless required or permitted by an accounting standard or interpretation as specifically disclosed in the accounting policies. Presentation is in Saudi Riyals, the functional currency of the Company. All amounts are derived from Arabic and English computerised accounting records and except where otherwise indicated are rounded to thousands using the standard rounding convention. The statement of financial position is presented in order of liquidity but is not presented using a current / non-current classification. The table below identifies current and non-current assets and liabilities. Financial Assets: Current Non-current Cash and cash equivalents Property and equipment – net Short term fixed income deposits Intangible assets – net Premiums and reinsurers’ receivable – net Goodwill Reinsurers’ share of unearned gross premiums Statutory deposit Reinsurers’ share of outstanding gross claims Accrued income on statutory deposit Reinsurers’ share of gross claims incurred but not reported Deferred excess of loss expenses Deferred policy acquisition costs Deferred third party administrator expenses Deferred withholding tax Deferred regulators’ levies Investments Due from related parties – net Prepaid expenses and other assets Financial Liabilities: Accrued and other liabilities End-of-service indemnities Reinsurers' balances payable Accrued commission income payable to SAMA Unearned gross premiums Unearned reinsurance commission Outstanding gross claims Gross claims incurred but not reported Premium deficiency reserve Other technical reserves Due to related parties Accounts payable Withholding tax provision Regulators’ levies provision Policyholders’ surplus distribution payable Zakat Income tax As required by the Implementing Regulations, the Company maintains separate books of account for Insurance Operations and Shareholders’ Operations and presents the financial information accordingly. Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined by management and approved by the Board of Directors. The statements of financial position, statements of income and statements of comprehensive income and cash flows of the Insurance Operations and Shareholders’ Operations which are presented in Note 38 of the Financial Statements are not required by IFRS but have been provided as supplementary financial information to comply with the Implementing Regulations which require the clear segregation of the assets, liabilities, income and expenses of the Insurance Operations and the Shareholders’ Operations. The supplementary financial information referred to above reflects the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations. In preparing the Company-level Financial Statements in compliance with IFRS, the balances and transactions of Insurance Operations are amalgamated and combined with those of Shareholders’ Operations. Interoperation balances, transactions and unrealised gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for Insurance Operations and Shareholders’ Operations are uniform for like transactions and events in similar circumstances. | |
| Disclosure of functional and presentation currency [text block] | The accounting policies, estimates and assumptions used in the preparation of the Financial Statements are consistent with those used for the year ended 31 December 2018 and with the exception of IFRS 16: Leases, no new or amended accounting policies or accounting standards were adopted by the Company during 2019. Financial Statements are prepared under the going concern convention using the accrual basis of accounting. The historical cost convention is followed except for the measurement at fair value of available for sale investments - see Note 5(r). Financial assets and financial liabilities are offset and the net amount reported only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the liabilities simultaneously. Income and expense are not offset unless required or permitted by an accounting standard or interpretation as specifically disclosed in the accounting policies. Presentation is in Saudi Riyals, the functional currency of the Company. All amounts are derived from Arabic and English computerised accounting records and except where otherwise indicated are rounded to thousands using the standard rounding convention. The statement of financial position is presented in order of liquidity but is not presented using a current / non-current classification. The table below identifies current and non-current assets and liabilities. Financial Assets: Current Non-current Cash and cash equivalents Property and equipment – net Short term fixed income deposits Intangible assets – net Premiums and reinsurers’ receivable – net Goodwill Reinsurers’ share of unearned gross premiums Statutory deposit Reinsurers’ share of outstanding gross claims Accrued income on statutory deposit Reinsurers’ share of gross claims incurred but not reported Deferred excess of loss expenses Deferred policy acquisition costs Deferred third party administrator expenses Deferred withholding tax Deferred regulators’ levies Investments Due from related parties – net Prepaid expenses and other assets Financial Liabilities: Accrued and other liabilities End-of-service indemnities Reinsurers' balances payable Accrued commission income payable to SAMA Unearned gross premiums Unearned reinsurance commission Outstanding gross claims Gross claims incurred but not reported Premium deficiency reserve Other technical reserves Due to related parties Accounts payable Withholding tax provision Regulators’ levies provision Policyholders’ surplus distribution payable Zakat Income tax As required by the Implementing Regulations, the Company maintains separate books of account for Insurance Operations and Shareholders’ Operations and presents the financial information accordingly. Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined by management and approved by the Board of Directors. The statements of financial position, statements of income and statements of comprehensive income and cash flows of the Insurance Operations and Shareholders’ Operations which are presented in Note 38 of the Financial Statements are not required by IFRS but have been provided as supplementary financial information to comply with the Implementing Regulations which require the clear segregation of the assets, liabilities, income and expenses of the Insurance Operations and the Shareholders’ Operations. The supplementary financial information referred to above reflects the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations. In preparing the Company-level Financial Statements in compliance with IFRS, the balances and transactions of Insurance Operations are amalgamated and combined with those of Shareholders’ Operations. Interoperation balances, transactions and unrealised gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for Insurance Operations and Shareholders’ Operations are uniform for like transactions and events in similar circumstances. | |
| Disclosure of going concern [text block] | The accounting policies, estimates and assumptions used in the preparation of the Financial Statements are consistent with those used for the year ended 31 December 2018 and with the exception of IFRS 16: Leases, no new or amended accounting policies or accounting standards were adopted by the Company during 2019. Financial Statements are prepared under the going concern convention using the accrual basis of accounting. The historical cost convention is followed except for the measurement at fair value of available for sale investments - see Note 5(r). Financial assets and financial liabilities are offset and the net amount reported only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the liabilities simultaneously. Income and expense are not offset unless required or permitted by an accounting standard or interpretation as specifically disclosed in the accounting policies. Presentation is in Saudi Riyals, the functional currency of the Company. All amounts are derived from Arabic and English computerised accounting records and except where otherwise indicated are rounded to thousands using the standard rounding convention. The statement of financial position is presented in order of liquidity but is not presented using a current / non-current classification. The table below identifies current and non-current assets and liabilities. Financial Assets: Current Non-current Cash and cash equivalents Property and equipment – net Short term fixed income deposits Intangible assets – net Premiums and reinsurers’ receivable – net Goodwill Reinsurers’ share of unearned gross premiums Statutory deposit Reinsurers’ share of outstanding gross claims Accrued income on statutory deposit Reinsurers’ share of gross claims incurred but not reported Deferred excess of loss expenses Deferred policy acquisition costs Deferred third party administrator expenses Deferred withholding tax Deferred regulators’ levies Investments Due from related parties – net Prepaid expenses and other assets Financial Liabilities: Accrued and other liabilities End-of-service indemnities Reinsurers' balances payable Accrued commission income payable to SAMA Unearned gross premiums Unearned reinsurance commission Outstanding gross claims Gross claims incurred but not reported Premium deficiency reserve Other technical reserves Due to related parties Accounts payable Withholding tax provision Regulators’ levies provision Policyholders’ surplus distribution payable Zakat Income tax As required by the Implementing Regulations, the Company maintains separate books of account for Insurance Operations and Shareholders’ Operations and presents the financial information accordingly. Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined by management and approved by the Board of Directors. The statements of financial position, statements of income and statements of comprehensive income and cash flows of the Insurance Operations and Shareholders’ Operations which are presented in Note 38 of the Financial Statements are not required by IFRS but have been provided as supplementary financial information to comply with the Implementing Regulations which require the clear segregation of the assets, liabilities, income and expenses of the Insurance Operations and the Shareholders’ Operations. The supplementary financial information referred to above reflects the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations. In preparing the Company-level Financial Statements in compliance with IFRS, the balances and transactions of Insurance Operations are amalgamated and combined with those of Shareholders’ Operations. Interoperation balances, transactions and unrealised gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for Insurance Operations and Shareholders’ Operations are uniform for like transactions and events in similar circumstances. | |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Description of changes in accounting policy [text block] | The accounting policies, estimates and assumptions used in the preparation of the Financial Statements are consistent with those used for the year ended 31 December 2018 and with the exception of IFRS 16: Leases, no new or amended accounting policies or accounting standards were adopted by the Company during 2019. Financial Statements are prepared under the going concern convention using the accrual basis of accounting. The historical cost convention is followed except for the measurement at fair value of available for sale investments - see Note 5(r). Financial assets and financial liabilities are offset and the net amount reported only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the liabilities simultaneously. Income and expense are not offset unless required or permitted by an accounting standard or interpretation as specifically disclosed in the accounting policies. Presentation is in Saudi Riyals, the functional currency of the Company. All amounts are derived from Arabic and English computerised accounting records and except where otherwise indicated are rounded to thousands using the standard rounding convention. The statement of financial position is presented in order of liquidity but is not presented using a current / non-current classification. The table below identifies current and non-current assets and liabilities. Financial Assets: Current Non-current Cash and cash equivalents Property and equipment – net Short term fixed income deposits Intangible assets – net Premiums and reinsurers’ receivable – net Goodwill Reinsurers’ share of unearned gross premiums Statutory deposit Reinsurers’ share of outstanding gross claims Accrued income on statutory deposit Reinsurers’ share of gross claims incurred but not reported Deferred excess of loss expenses Deferred policy acquisition costs Deferred third party administrator expenses Deferred withholding tax Deferred regulators’ levies Investments Due from related parties – net Prepaid expenses and other assets Financial Liabilities: Accrued and other liabilities End-of-service indemnities Reinsurers' balances payable Accrued commission income payable to SAMA Unearned gross premiums Unearned reinsurance commission Outstanding gross claims Gross claims incurred but not reported Premium deficiency reserve Other technical reserves Due to related parties Accounts payable Withholding tax provision Regulators’ levies provision Policyholders’ surplus distribution payable Zakat Income tax As required by the Implementing Regulations, the Company maintains separate books of account for Insurance Operations and Shareholders’ Operations and presents the financial information accordingly. Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined by management and approved by the Board of Directors. The statements of financial position, statements of income and statements of comprehensive income and cash flows of the Insurance Operations and Shareholders’ Operations which are presented in Note 38 of the Financial Statements are not required by IFRS but have been provided as supplementary financial information to comply with the Implementing Regulations which require the clear segregation of the assets, liabilities, income and expenses of the Insurance Operations and the Shareholders’ Operations. The supplementary financial information referred to above reflects the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations. In preparing the Company-level Financial Statements in compliance with IFRS, the balances and transactions of Insurance Operations are amalgamated and combined with those of Shareholders’ Operations. Interoperation balances, transactions and unrealised gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for Insurance Operations and Shareholders’ Operations are uniform for like transactions and events in similar circumstances. | |
| Description of accounting policy for cash and cash equivalents [text block] | Cash and cash equivalents comprise cash on hand, bank current accounts and deposits (including short term highly liquid investments) with original maturities of three months or less. | |
| Description of accounting policy for premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | Gross Premiums and Gross Commission Income are recognised as revenue when the insurance policy is issued. Ceded Premiums are deducted from Gross Premiums to arrive at Net Premiums. Gross and Ceded Premiums and Gross Commission Income which relate to cover periods beyond the end of a financial period are calculated by the Company and reported as Unearned using the following methods: Marine cargo risks: Last three months actual period of cover preceding the reporting date. Engineering construction risks with period of cover greater than one year: Linearly increasing sums at risk applied to actual period of cover. All other risks: Pro-rata to actual period of cover. | |
| Description of accounting policy for receivables [text block] | Premiums receivables are stated at gross written premiums receivable from insurance contracts less an allowance for any uncollectible amounts. Premiums and reinsurer receivables are initially recognised at inception of the related insurance contract measured at the fair value of the consideration receivable. The carrying value of receivables is reviewed for impairment and whenever events or circumstances indicate that the carrying amount may not be recoverable the impairment loss is recognised in the statement of income. Receivable balances are derecognised when the Company no longer controls the contractual rights that comprise the receivable balance which is normally the case when the receivable balance is sold or all cash flows attributable to the balance are passed through an independent third party. Receivables disclosed in Note 9 fall under the scope of IFRS 4 - Insurance Contracts. The Implementing Regulations define the basis for the provision for doubtful receivables based on ageing of receivables from date of inception of insurance contracts regardless of any credit terms granted to the insured or reinsurer. | |
| Description of accounting policy for deferred policy acquisition costs [text block] | Certain costs are deferred on initial recognition and subsequently expensed in direct proportion to income recognition of the underlying premiums to which they relate. The costs subject to this policy are: Policy acquisition costs payable to insurance companies, brokers, agents and employees arising from the writing or renewing of insurance contracts. Withholding taxes levied on foreign payments. Regulators' levies. Excess of loss expenses. Third party administrator expenses arising from processing of medical claims Impairment reviews are conducted regularly and any impairment loss is reflected in the statement of income. m) Insurance and reinsurance contracts Insurance contracts are those contracts where the Company (the insurer) has accepted significant insurance risk from another party (the policyholders) by agreeing to compensate the policyholders if a specified uncertain future event (the insured event) adversely affects the policyholders. Once a contract has been classified as an insurance contract it remains an insurance contract for the remainder of its lifetime even if the insurance risk reduces significantly in this period. Reinsurance contracts, by which the Company cedes insurance risks to reinsurers, are entered into by the Company in the normal course of business. Under such contracts the Company agrees to cede part of the underlying premium to the reinsurer and the reinsurer agrees to pay commission on the ceded premium to the Company and to compensate the Company for losses arising on the underlying insurance contract. Amounts recoverable from or due to reinsurers are recognised in the statement of financial position and the statement of income consistently with the treatment of amounts associated with the underlying insurance contracts and in accordance with the terms of each reinsurance contract. At each reporting date, the Company assesses whether there is any indication that a reinsurance asset may be impaired. Where an indicator of impairment exists, the Company makes a formal estimate of recoverable amount. Where the carrying amount of a reinsurance asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount. Reinsurance assets and liabilities are derecognised when the contractual rights expire or when the contract is transferred to another party. Reinsurance contracts do not relieve the Company from its obligations to policyholders. | |
| Description of accounting policy for income and other taxes including deferred taxes [text block] | Zakat and income tax have been provided for in accordance with regulations currently in force in Saudi Arabia. The temporary and permanent differences between financial and adjusted taxable results are mainly due to adjustments to depreciation, provisions and other items in accordance with the income tax regulations. Deferred tax arising out of these differences is not significant and accordingly was not provided for. Zakat is calculated on Saudi shareholders’ share of adjusted equity subject to a minimum base equal to the relevant share of adjusted net profit. Foreign shareholders are subject to income tax calculated on the relevant share of adjusted net profit. | |
| Description of accounting policy for intangible assets and goodwill [text block] | Property, equipment and intangible assets are stated at cost, excluding the costs of day to day servicing, less accumulated depreciation and accumulated impairment in value. Replacement or major refurbishment costs are capitalised when incurred if it is probable that future economic benefits resulting from incurring the cost will arise and the cost can be measured reliably. All other repair and maintenance costs are charged to the statement of income as they are incurred. Depreciation is provided on a straight line basis over the useful lives of the assets at the following rates: Fixed assets Useful life in years Leasehold fixtures 10 Office furniture 10 Office equipment 10 Motor vehicles 4 IT equipment 4 Intangible Assets Useful life in years IT systems 4 The assets’ residual values and remaining useful lives are continually reviewed and adjusted if appropriate. Impairment losses are recognised as an expense. An item of property, equipment or an intangible asset is derecognised upon disposal or when no further future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset is recognised as income or expense. Capital work-in-progress includes tangible and intangible assets being developed for future use and are not depreciated. When the assets are commissioned the work-in-progress amount is transferred to the respective asset categories and thereafter depreciated as set out above with effect from the commissioning date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are reported in the statement of income. u) Leases The Company recognises right-of-use assets representing the right to use the underlying leased asset and a lease liability representing the obligation to make lease payments. Assets and liabilities arising from a lease are initially measured on a present value basis using the incremental borrowing rate, being the rate that the Company would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. There are optional exemptions for short-term leases and leases of low-value items. Short-term leases are leases with a lease term of 12 months or less. Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in the statement of income. | |
| Description of accounting policy for property and equipment [text block] | Property, equipment and intangible assets are stated at cost, excluding the costs of day to day servicing, less accumulated depreciation and accumulated impairment in value. Replacement or major refurbishment costs are capitalised when incurred if it is probable that future economic benefits resulting from incurring the cost will arise and the cost can be measured reliably. All other repair and maintenance costs are charged to the statement of income as they are incurred. Depreciation is provided on a straight line basis over the useful lives of the assets at the following rates: Fixed assets Useful life in years Leasehold fixtures 10 Office furniture 10 Office equipment 10 Motor vehicles 4 IT equipment 4 Intangible Assets Useful life in years IT systems 4 The assets’ residual values and remaining useful lives are continually reviewed and adjusted if appropriate. Impairment losses are recognised as an expense. An item of property, equipment or an intangible asset is derecognised upon disposal or when no further future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset is recognised as income or expense. Capital work-in-progress includes tangible and intangible assets being developed for future use and are not depreciated. When the assets are commissioned the work-in-progress amount is transferred to the respective asset categories and thereafter depreciated as set out above with effect from the commissioning date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are reported in the statement of income. | |
| Description of accounting policy for liability adequacy test [text block] | At each reporting date the Company assesses whether there is any overall excess of expected claims over unearned premiums net of deferred acquisition costs. This calculation uses current estimates of future contractual cash flows after taking account of the return expected to arise on assets relating to the relevant insurance technical provisions. If that assessment shows that the carrying amount of the unearned premiums (less related deferred acquisition costs) is inadequate, the entire deficiency is immediately recognized and a provision created. | |
| Description of accounting policy for settlement and trade date accounting [text block] | All purchases and sales of financial instruments are accounted for at trade date being the date the Company commits to purchase or sell the instruments. | |
| Description of accounting policy for provisions [text block] | Provisions are recognised when the Company has an obligation (legal or constructive) arising from a past event and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provided amount to be recovered, the recovery is recognised only when it is believed to be certain | |
| Description of accounting policy for employees end of service benefits [text block] | Benefits payable to the employees of the Company at the end of their service are provided for in accordance with the labour laws of Saudi Arabia. The cost of this benefit for each employee is charged over their period of employment and provisions are continually re-assessed and adjusted on the basis of current salary, related benefits and completed service. On cessation of employment, the entitlement will be paid based upon the employees’ final salary, related benefits and length of service. Interim payments may be approved at the Company's discretion for employees with service in excess of 10 years. The Company has calculated end of service liability in accordance with IAS 19. No material difference arises between this amount and the liability calculated in accordance with the Labour Laws of the Kingdom of Saudi Arabia and accordingly no adjustment was required to the Financial Statements. | |
| Description of accounting policy for zakat [text block] | Zakat and income tax have been provided for in accordance with regulations currently in force in Saudi Arabia. The temporary and permanent differences between financial and adjusted taxable results are mainly due to adjustments to depreciation, provisions and other items in accordance with the income tax regulations. Deferred tax arising out of these differences is not significant and accordingly was not provided for. Zakat is calculated on Saudi shareholders’ share of adjusted equity subject to a minimum base equal to the relevant share of adjusted net profit. Foreign shareholders are subject to income tax calculated on the relevant share of adjusted net profit. | |
| Description of accounting policy for impairment and uncollectibiity of financial assets [text block] | The Company assesses at each reporting date whether there is objective evidence that a financial instrument or a group of financial instruments is impaired. An impairment exists if one or more events that has occurred since the initial recognition of the instrument has an impact on the estimated future cash flows of the instrument or the group of instruments that can be reliably estimated. Evidence of impairment may include: Significant financial difficulty of the issuer or debtor; A breach of contract, such as a default or delinquency in payments; It becoming probable that the issuer or debtor will enter bankruptcy or other financial reorganization; The disappearance of an active market for that financial instrument because of financial difficulties; or Observable data indicating that there is a measurable decrease in the estimated future cash flow from a group of financial instruments since the initial recognition of those instruments, although the decrease cannot yet be identified with the individual financial instruments in the Company. This could include adverse changes in the payment status of issuers or debtors in the Company or national or local economic conditions at the country of the issuers that correlate with defaults. If there is objective evidence that an impairment loss on a financial instrument exists, the impairment is determined as follows: For instruments carried at fair value impairment arises to the extent significant or prolonged decline in fair value has occurred. For instruments carried at amortized cost impairment arises to the extent discounted estimated future cash flows are significantly less than amortized cost. For debt instruments classified as available for sale the amount recorded for impairment is the cumulative loss measured as the difference between the amortised cost and the current fair value, less any impairment loss on that investment previously recognised. If, in a subsequent period, the fair value of a debt instrument increases and the increase can be objectively related to credit events occurring after the impairment loss was recognised the impairment loss is reversed. The determination of what is significant or prolonged requires judgement. In making this judgement a period of 12 months or longer is considered to be prolonged and decline of 30% from original cost is considered to be significant. The Company considers factors such as market’s assessment of creditworthiness as reflected in bond yields, rating agencies’ assessment, country’s ability to access capital markets and probability of debt being restructured, resulting in holders suffering losses through voluntary or mandatory debt forgiveness. The amount recorded for impairment is the cumulative loss measured as the difference between the amortised cost and the current fair value, less any impairment loss on that investment previously recognised in the statement of income and statement of comprehensive income. For equity investments held as available for sale, a significant or prolonged decline in fair value below its carrying costs represents objective evidence of impairment. The impairment loss cannot be reversed through statement of income as long as the investment continues to be recognised i.e. any increase in fair value after impairment has been recorded can only be recognised in other comprehensive income. On derecognition, any cumulative gain or loss previously recognised in other comprehensive income is included in the statement of income under realised gain / (loss) on available for sale investments. | |
| Description of accounting policy for fair value measurement [text block] | The fair value of financial instruments is based where possible on quoted prices for marketable securities. The fair value of commission bearing items is estimated based on discounted cash flows using commission rates for items with similar terms and risk characteristics. For financial instruments where there is no active market, fair value is determined by reference to the market value of similar financial instruments or where this cannot be determined is calculated using a variety of valuation techniques. The assumptions are taken from observable market data where possible and where this is not possible judgment is relied upon to establish fair values | |
| Description of accounting policy for cash dividend and non-cash distribution to equity holders [text block] | Dividend distribution is recognized as a liability in the period in which the dividend is approved by the shareholders. | |
| Description of accounting policy for investment income [text block] | The Company does not invest in derivatives. At initial recognition the Company classifies it’s non derivative investments into three categories depending on the purpose for which the investments were acquired or originated - held to maturity, fair value through income statement and available for sale. At the current reporting date all investments are classified by the Company as available for sale. Distributions of income for all three classifications are recognised when the right to receive the income is established. The income is reported in the statements of income. Investments are derecognised when the right to receive cash flows and/or substantially all risks and rewards of ownership have expired or been transferred. Held to maturity Investments classified as held to maturity are those with fixed or determinable income and fixed maturities which the Company has the positive intention and ability to hold until maturity. These investments are initially recognised at cost including any related transaction costs directly attributable to the acquisition. At each reporting date they are remeasured at amortised cost using the effective interest rate method. Valuation impairments are reported in the statements of income. Valuation gains are reported in the statements of income only to the extent of cumulative impairments previously recognised. Realised gains and losses arising on derecognition are reported in the statements of income. Fair value through income statement Investments classified as fair value through income statement are those acquired with the intention of trading in the near term. These investments are initially recognised at fair value with any related transaction costs directly attributable to the acquisition charged to the statements of income on acquisition. At each reporting date they are remeasured at fair value with the resulting unrealised gains or losses and any impairment charges reported in the statements of income. Realised gains and losses arising on derecognition are reported in the statements of income. Available for sale Investments classified as available for sale are those which are not classified as held to maturity or as fair value through income statement and are acquired with the primary intention of holding for an indefinite period of time but which may require to be traded sooner in response to a need for liquidity or as a result of market changes. These investments are initially recognised at cost including any related transaction costs directly attributable to the acquisition. At each reporting date they are remeasured at fair value unless they do not have a quoted market price or there is no other appropriate method from which to derive reliable fair value in which case they remain stated at cost less any impairment. Unrealised gains and losses arising from a remeasurement at fair value are reported in other comprehensive income and cumulatively held in a separate equity reserve unless the investment is impaired. On derecognition of unimpaired investments the cumulative unrealised gains or losses previously reported in other comprehensive income and held in the separate equity reserve are transferred to and reported in the statements of income. Realised gains and losses arising on derecognition are reported in the statements of income. On impairment of investments the impairment charges are reported in the statements of income and the cumulative unrealised gains or losses previously reported in other comprehensive income and held in the separate equity reserve are transferred to and reported in the statements of income. Realised gains and losses arising on derecognition are reported in the statements of income. Reclassification of available for sale investments The Company evaluates whether the ability and intention to sell available for sale investments in the near future is still appropriate. If due to inactive markets the Company is unable to trade such investments it may elect to reclassify if it has the ability and intention to hold the investments for the foreseeable future or until maturity. Reclassification to loans and receivables is permitted when the investments meet the definition of loans and receivables and the Company has the intention and ability to hold the investments for the foreseeable future or until maturity. Reclassification to held to maturity is permitted only when the Company has the ability and intention to hold the investment until maturity. For an investment reclassified out of available for sale category, the fair value at the date of reclassification becomes its new amortised cost and any previous gain or loss on that investment that has been recognised in equity is amortised to the statement of income over the remaining life of the investment using the effective interest rate method. Any difference between the new amortised cost and the maturity amount is also amortised over the remaining life of the investment using the effective interest rate method. If the investment is subsequently determined to be impaired the amount recorded in equity is reclassified to the statement of income. | |
| Description of accounting policy for claims/ benefits [text block] | Claims comprise amounts payable to contract holders, third parties and related loss adjustment expenses, net of salvage and other recoveries. In addition to amounts already paid, claims include estimated provisions determined from loss reports for claims reported but not settled together with provisions based on the Company’s judgement and prior experience for claims incurred but not reported (IBNR). Any differences crystalizing between the provisions at the reporting date and subsequent settlements or adjustments to those provisions are recognised in the statement of income as income or expense as appropriate. The Company does not discount its liability for unpaid claims as substantially all reported claims are expected to be paid within one year from occurrence. While the Company believes that the estimated provisions are adequate, nevertheless, the ultimate liability of the outstanding claims may be in excess of or less than the provided amounts. Some insurance contracts permit the Company to subsequently sell assets acquired in settling a claim usually damaged or salvaged goods and the Company may also have rights to pursue third parties for payment of some or all claim costs. Estimates of salvage and subrogation recoveries are included in the measurement of outstanding claims. | |
| Description of accounting policy for life insurance/ takaful contracts [text block] | Insurance contracts are those contracts where the Company (the insurer) has accepted significant insurance risk from another party (the policyholders) by agreeing to compensate the policyholders if a specified uncertain future event (the insured event) adversely affects the policyholders. Once a contract has been classified as an insurance contract it remains an insurance contract for the remainder of its lifetime even if the insurance risk reduces significantly in this period. Reinsurance contracts, by which the Company cedes insurance risks to reinsurers, are entered into by the Company in the normal course of business. Under such contracts the Company agrees to cede part of the underlying premium to the reinsurer and the reinsurer agrees to pay commission on the ceded premium to the Company and to compensate the Company for losses arising on the underlying insurance contract. Amounts recoverable from or due to reinsurers are recognised in the statement of financial position and the statement of income consistently with the treatment of amounts associated with the underlying insurance contracts and in accordance with the terms of each reinsurance contract. At each reporting date, the Company assesses whether there is any indication that a reinsurance asset may be impaired. Where an indicator of impairment exists, the Company makes a formal estimate of recoverable amount. Where the carrying amount of a reinsurance asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount. Reinsurance assets and liabilities are derecognised when the contractual rights expire or when the contract is transferred to another party. Reinsurance contracts do not relieve the Company from its obligations to policyholders. | |
| Description of accounting policy for impairment of non-financial assets [text block] | Assets that have an indefinite useful life are not subject to depreciation and are tested annually for impairment. Assets that are subject to depreciation are reviewed for impairment annually or earlier if events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash-generating units and cash flows. | |
| Description of accounting policy for segment reporting [text block] | A segment is a distinguishable component of the Company that is engaged either in providing products or services (a business segment) or in providing products or services within a particular economic environment (a geographic segment), which is subject to risks and rewards that are different from those of other segments. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors. | |
| Description of accounting policy for accounting of leases [text block] | The Company recognises right-of-use assets representing the right to use the underlying leased asset and a lease liability representing the obligation to make lease payments. Assets and liabilities arising from a lease are initially measured on a present value basis using the incremental borrowing rate, being the rate that the Company would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. There are optional exemptions for short-term leases and leases of low-value items. Short-term leases are leases with a lease term of 12 months or less. Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in the statement of income. | |
| Description of accounting policy for foreign currencies [text block] | Exchange rates prevailing at the date of transactions are used to translate transactions denominated in foreign currencies to Saudi Riyals. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Resulting gains or losses, both realised and unrealised, are recognised as income or expense. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the date of the initial transaction and are not subsequently restated. | |
| Description of accounting policy for financial assets [text block] | The preparation of Financial Statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies, the reported amount of assets and liabilities, contingent assets and liabilities, resultant provisions, changes in fair value and the reported amounts of income and expense. These judgements and estimates are based on the Company’s best knowledge of current events and actions and are continually evaluated and updated, however future events could result in outcomes requiring material adjustments to the reported amounts. In preparing the Financial Statements significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty including the risk management policies were the same as those that applied for the year ended 31 December 2018. The following judgments and estimates have the most significant effect on the amounts recognised. Impairment losses on receivables The Company assesses impairment for receivables that are individually significant and receivables included in a group of financial assets with similar credit risk characteristics. Receivables that are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not included in a collective assessment of impairment. This assessment of impairment requires judgment. In making this judgment, the Company establishes if there is objective evidence that all amounts due may not be collectible in accordance with the original terms of the contract and evaluates credit risk characteristics that consider past-due status being indicative of the ability to pay all amounts due as per contractual terms. Insurance contract liabilities For insurance contracts, estimates have to be made both for the expected ultimate cost of claims reported at the reporting date and for the expected ultimate cost of claims incurred but not yet reported (IBNR) at the reporting date. It can take a significant period of time before the ultimate claims cost can be established with certainty and for some type of policies IBNR claims form a significant part of the liability. The primary technique adopted by the Company in estimating the cost of reported and IBNR claims is that of using past claims settlement trends to predict future claims settlement trends. Historical claims development is analyzed by underwriting year, accident year and further analyzed by significant business lines and claim types. Large claims are usually separately addressed, either by being reserved at the face value of loss adjustor estimates or separately projected to reflect their future expected development. In most cases, no explicit assumptions are made regarding future rates of claims inflation or loss ratios. Instead, the assumptions used are those implicit in the historic claims development data on which the projections are based. Additional qualitative judgment is used to assess the extent to which past trends may not apply in future, (for example to reflect one-off occurrences, changes in external or other factors such as public attitudes to claiming, economic conditions, levels of claims inflation, judicial decisions and legislation, as well as internal factors such as portfolio mix, policy conditions and claims handling procedures) in order to arrive at the estimated ultimate cost of claims that present the likely outcome from the range of possible outcomes, taking into account all the uncertainties involved. In addition a range of technical methods are used by the Company’s actuaries to independently assess and critically review the estimates made by the Company. Prior claims estimates are continually reviewed and adjusted as claims develop. Insurance contract liabilities are not discounted for the time value of money as substantially all claims are expected to be paid within one year of the reporting date. The liabilities are derecognised when the obligation to pay a claim expires, is discharged or is cancelled. Impairment of financial instruments Financial instruments are considered impaired when it is determined there has been a significant or prolonged decline in fair value relative to cost. This determination requires judgement. In making this judgement factors are considered such as normal share price volatility, financial status of the investee including cash flow and sector and technology status and development. Fair value of financial instruments The fair value of financial instruments is based where possible on quoted prices for marketable securities. The fair value of commission bearing items is estimated based on discounted cash flows using commission rates for items with similar terms and risk characteristics. For financial instruments where there is no active market, fair value is determined by reference to the market value of similar financial instruments or where this cannot be determined is calculated using a variety of valuation techniques. The assumptions are taken from observable market data where possible and where this is not possible judgment is relied upon to establish fair values. | |
| Description of accounting policy for financial liabilities [text block] | The preparation of Financial Statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies, the reported amount of assets and liabilities, contingent assets and liabilities, resultant provisions, changes in fair value and the reported amounts of income and expense. These judgements and estimates are based on the Company’s best knowledge of current events and actions and are continually evaluated and updated, however future events could result in outcomes requiring material adjustments to the reported amounts. In preparing the Financial Statements significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty including the risk management policies were the same as those that applied for the year ended 31 December 2018. The following judgments and estimates have the most significant effect on the amounts recognised. Impairment losses on receivables The Company assesses impairment for receivables that are individually significant and receivables included in a group of financial assets with similar credit risk characteristics. Receivables that are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not included in a collective assessment of impairment. This assessment of impairment requires judgment. In making this judgment, the Company establishes if there is objective evidence that all amounts due may not be collectible in accordance with the original terms of the contract and evaluates credit risk characteristics that consider past-due status being indicative of the ability to pay all amounts due as per contractual terms. Insurance contract liabilities For insurance contracts, estimates have to be made both for the expected ultimate cost of claims reported at the reporting date and for the expected ultimate cost of claims incurred but not yet reported (IBNR) at the reporting date. It can take a significant period of time before the ultimate claims cost can be established with certainty and for some type of policies IBNR claims form a significant part of the liability. The primary technique adopted by the Company in estimating the cost of reported and IBNR claims is that of using past claims settlement trends to predict future claims settlement trends. Historical claims development is analyzed by underwriting year, accident year and further analyzed by significant business lines and claim types. Large claims are usually separately addressed, either by being reserved at the face value of loss adjustor estimates or separately projected to reflect their future expected development. In most cases, no explicit assumptions are made regarding future rates of claims inflation or loss ratios. Instead, the assumptions used are those implicit in the historic claims development data on which the projections are based. Additional qualitative judgment is used to assess the extent to which past trends may not apply in future, (for example to reflect one-off occurrences, changes in external or other factors such as public attitudes to claiming, economic conditions, levels of claims inflation, judicial decisions and legislation, as well as internal factors such as portfolio mix, policy conditions and claims handling procedures) in order to arrive at the estimated ultimate cost of claims that present the likely outcome from the range of possible outcomes, taking into account all the uncertainties involved. In addition a range of technical methods are used by the Company’s actuaries to independently assess and critically review the estimates made by the Company. Prior claims estimates are continually reviewed and adjusted as claims develop. Insurance contract liabilities are not discounted for the time value of money as substantially all claims are expected to be paid within one year of the reporting date. The liabilities are derecognised when the obligation to pay a claim expires, is discharged or is cancelled. Impairment of financial instruments Financial instruments are considered impaired when it is determined there has been a significant or prolonged decline in fair value relative to cost. This determination requires judgement. In making this judgement factors are considered such as normal share price volatility, financial status of the investee including cash flow and sector and technology status and development. Fair value of financial instruments The fair value of financial instruments is based where possible on quoted prices for marketable securities. The fair value of commission bearing items is estimated based on discounted cash flows using commission rates for items with similar terms and risk characteristics. For financial instruments where there is no active market, fair value is determined by reference to the market value of similar financial instruments or where this cannot be determined is calculated using a variety of valuation techniques. The assumptions are taken from observable market data where possible and where this is not possible judgment is relied upon to establish fair values. | |
| Description of accounting policy for off setting financial assets and liabilities [text block] | The accounting policies, estimates and assumptions used in the preparation of the Financial Statements are consistent with those used for the year ended 31 December 2018 and with the exception of IFRS 16: Leases, no new or amended accounting policies or accounting standards were adopted by the Company during 2019. | |
| Description of accounting policy for estimation uncertainty [text block] | In preparing the Financial Statements significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty including the risk management policies were the same as those that applied for the year ended 31 December 2018. | |
| Description of accounting policy for time (murabaha) deposit [text block] | Short term fixed income deposits are deposits maturing after 3 and before 12 months from the deposit placement date. Long term fixed income deposits are deposits maturing more than 12 months from the deposit placement date. | |
| Description of accounting policy for statutory deposit [text block] | All numbers in this note are stated in Saudi Riyal whole numbers and are not rounded to thousands. In compliance with the Cooperative Insurance Law, the Implementing Regulations and the Articles, 20% of shareholders’ net profit (as defined below) is transferred to statutory reserve at the end of each financial year until the statutory reserve amounts to 100% of the paid capital. At 31 December 2019 Statutory Reserve represents 20% of shareholders' net profit (as defined below) earned from incorporation to 31 December 2019 (2018: 20% of shareholders' net profit earned from incorporation to 31 December 2018). In calculating Statutory Reserve, shareholders’ net profit is stated after deducting zakat and income tax charges and excludes unrealised investment gains. The Statutory Reserve is not available for distribution but it may be converted to share capital in funding a bonus share issue. The Statutory Reserve calculated on the above basis was reduced by SAR 20,000,000 on 22 May 2018 as a result of the issue of bonus shares on that date. | |
| Description of accounting policy for seasonality of operations [text block] | There are no seasonal changes that may affect insurance operations of the Company. | |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of transfer of portfolio [text block] | All numbers in this note are stated in Saudi Riyal whole numbers and are not rounded to thousands. The insurance portfolio and related business of Arabian Shield Insurance Company EC was acquired by the Company effective 01 January 2009 at a purchase consideration approved by SAMA resulting in a Goodwill amount of SAR 49,100,000. The related assets and liabilities of Arabian Shield Insurance Company EC were also acquired at book value amounting to SAR 20,825,600 as per the audited Financial Statements of Arabian Shield Insurance Company EC at 31 December 2008. The combined sum due to Arabian Shield Insurance Company EC in consideration for goodwill and net assets acquired amounted to SAR 69,925,600. Based on criteria related to the Company’s earnings up to 31 December 2015 the Goodwill amount was subsequently reduced by SAR 2,306,137 to SAR 46,793,863. This in turn resulted in a reduction in the combined sum due to Arabian Shield Insurance Company EC from SAR 69,925,600 to SAR 67,619,463 which has been fully paid with no further amounts owing. | |
| Disclosure of due from related parties [text block] | Definitions and explanations Related parties represent shareholders, both individual and corporate, directors, members of the audit, executive, investment, risk and nomination and remuneration committees, the board secretary, key executives and entities controlled (including jointly controlled) or significantly influenced by such parties. The immediate families of the above are related parties. Key Executives, in the context of defining Related Parties, for the year ended 31 December 2019 means the following six people (2018: five people) – the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the four other executives (2018: three other executives) who earned the highest remuneration. All transactions with related parties are made on an arm’s length basis and no conflicts or potential conflicts of interest were identified during the year ended 31 December 2019 (2018: None). Amounts due to related parties do not include amounts provided for outstanding claims under processing or IBNR. Balances due to or from related parties are unsecured, interest free and are settled in cash and no guarantees have been made or received in relation to any related party transaction or balance. An impairment assessment is undertaken examining the financial position of and the market in which each related party operates. For the year ended 31 December 2019, the Company has not recorded any impairment of receivables relating to amounts due from related parties (2018: Nil). Transactions with related parties are in respect of purchase of insurance portfolio and related business, investments, remuneration and annual insurance contracts. Purchase from a related party of insurance portfolio and related business The insurance portfolio and related business of Arabian Shield Insurance Company EC was acquired by the Company effective 1 January 2009 at a purchase consideration approved by SAMA resulting in a Goodwill amount of 49,100,000. The related assets and liabilities of Arabian Shield Insurance Company EC were also acquired at book value amounting to 20,825,600 as per the audited Financial Statements of Arabian Shield Insurance Company EC at 31 December 2008. The combined sum due to Arabian Shield Insurance Company EC in consideration for goodwill and net assets acquired amounted to 69,925,600. Based on criteria related to the Company’s earnings up to 31 December 2015 the Goodwill amount was subsequently reduced by 2,306,137 to 46,793,863. This in turn resulted in a reduction in the combined sum due to Arabian Shield Insurance Company EC from 69,925,600 to 67,619,463 which has been fully paid with no further amounts owing. Investment in a related party Investments at 31 December 2018 included an investment of SAR 3,000,000 in a Sukuk issued by an entity controlled or significantly influenced by a related party. The Sukuk was redeemed in full on 07 March 2019 leaving a Nil balance at 31 December 2019. This investment generated an income in 2019 of 25,179 (2018: 125,929). | |
| Disclosure of statutory deposit [text block] | The Company maintains a deposit of SAR 30,000,000 (31 December 2018: SAR 30,000,000) in a deposit account at The Saudi British Bank. This deposit cannot be withdrawn without SAMA's consent and the Company does not earn commission from the deposit. | |
| Disclosure of due to related parties [text block] | Definitions and explanations Related parties represent shareholders, both individual and corporate, directors, members of the audit, executive, investment, risk and nomination and remuneration committees, the board secretary, key executives and entities controlled (including jointly controlled) or significantly influenced by such parties. The immediate families of the above are related parties. Key Executives, in the context of defining Related Parties, for the year ended 31 December 2019 means the following six people (2018: five people) – the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the four other executives (2018: three other executives) who earned the highest remuneration. All transactions with related parties are made on an arm’s length basis and no conflicts or potential conflicts of interest were identified during the year ended 31 December 2019 (2018: None). Amounts due to related parties do not include amounts provided for outstanding claims under processing or IBNR. Balances due to or from related parties are unsecured, interest free and are settled in cash and no guarantees have been made or received in relation to any related party transaction or balance. An impairment assessment is undertaken examining the financial position of and the market in which each related party operates. For the year ended 31 December 2019, the Company has not recorded any impairment of receivables relating to amounts due from related parties (2018: Nil). Transactions with related parties are in respect of purchase of insurance portfolio and related business, investments, remuneration and annual insurance contracts. Purchase from a related party of insurance portfolio and related business The insurance portfolio and related business of Arabian Shield Insurance Company EC was acquired by the Company effective 1 January 2009 at a purchase consideration approved by SAMA resulting in a Goodwill amount of 49,100,000. The related assets and liabilities of Arabian Shield Insurance Company EC were also acquired at book value amounting to 20,825,600 as per the audited Financial Statements of Arabian Shield Insurance Company EC at 31 December 2008. The combined sum due to Arabian Shield Insurance Company EC in consideration for goodwill and net assets acquired amounted to 69,925,600. Based on criteria related to the Company’s earnings up to 31 December 2015 the Goodwill amount was subsequently reduced by 2,306,137 to 46,793,863. This in turn resulted in a reduction in the combined sum due to Arabian Shield Insurance Company EC from 69,925,600 to 67,619,463 which has been fully paid with no further amounts owing. Investment in a related party Investments at 31 December 2018 included an investment of SAR 3,000,000 in a Sukuk issued by an entity controlled or significantly influenced by a related party. The Sukuk was redeemed in full on 07 March 2019 leaving a Nil balance at 31 December 2019. This investment generated an income in 2019 of 25,179 (2018: 125,929). | |
| Disclosure of related party transactions [text block] | Definitions and explanations Related parties represent shareholders, both individual and corporate, directors, members of the audit, executive, investment, risk and nomination and remuneration committees, the board secretary, key executives and entities controlled (including jointly controlled) or significantly influenced by such parties. The immediate families of the above are related parties. Key Executives, in the context of defining Related Parties, for the year ended 31 December 2019 means the following six people (2018: five people) – the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the four other executives (2018: three other executives) who earned the highest remuneration. All transactions with related parties are made on an arm’s length basis and no conflicts or potential conflicts of interest were identified during the year ended 31 December 2019 (2018: None). Amounts due to related parties do not include amounts provided for outstanding claims under processing or IBNR. Balances due to or from related parties are unsecured, interest free and are settled in cash and no guarantees have been made or received in relation to any related party transaction or balance. An impairment assessment is undertaken examining the financial position of and the market in which each related party operates. For the year ended 31 December 2019, the Company has not recorded any impairment of receivables relating to amounts due from related parties (2018: Nil). Transactions with related parties are in respect of purchase of insurance portfolio and related business, investments, remuneration and annual insurance contracts. Purchase from a related party of insurance portfolio and related business The insurance portfolio and related business of Arabian Shield Insurance Company EC was acquired by the Company effective 1 January 2009 at a purchase consideration approved by SAMA resulting in a Goodwill amount of 49,100,000. The related assets and liabilities of Arabian Shield Insurance Company EC were also acquired at book value amounting to 20,825,600 as per the audited Financial Statements of Arabian Shield Insurance Company EC at 31 December 2008. The combined sum due to Arabian Shield Insurance Company EC in consideration for goodwill and net assets acquired amounted to 69,925,600. Based on criteria related to the Company’s earnings up to 31 December 2015 the Goodwill amount was subsequently reduced by 2,306,137 to 46,793,863. This in turn resulted in a reduction in the combined sum due to Arabian Shield Insurance Company EC from 69,925,600 to 67,619,463 which has been fully paid with no further amounts owing. Investment in a related party Investments at 31 December 2018 included an investment of SAR 3,000,000 in a Sukuk issued by an entity controlled or significantly influenced by a related party. The Sukuk was redeemed in full on 07 March 2019 leaving a Nil balance at 31 December 2019. This investment generated an income in 2019 of 25,179 (2018: 125,929). | |
| Disclosure of insurance/ takaful operations surplus and dividends [text block] | The primary source of capital used by the Company is equity shareholders’ funds. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue new shares. | |
| Disclosure of claims/ benefits development table [text block] | The Company aims to maintain adequate reserves in respect of its insurance contracts in order to protect against adverse future claims experience and developments. The triangulation analysis and tables below reflect, by accident year, the cumulative development of reported claims up to each subsequent annual reporting date. Cumulative payments against reported claims are shown and deducted from the cumulative development of reported claims to show the reserve for outstanding reported claims. The reserve at the latest reporting date for incurred but not reported claims (IBNR) is added to complete the estimate of the ultimate value of claims cumulatively incurred to that reporting date whether reported or not. Comparative tables at 31 December 2018 are shown. Quarterly evaluation techniques review the adequate of IBNR reserves and the Company’s capability to accurately predict the ultimate claims liability. | |
| Disclosure of commitments and contingencies, general [text block] | The Company is subject to legal proceedings in the ordinary course of business. At 31 December 2019 there were no other commitments, contingencies or outstanding legal proceedings or disputes of a material nature. | |
| Disclosure of risk management [abstract] | | |
| Disclosure of insurance/ takaful risk [text block] | Insurance risk is the risk that actual claims payable to contract holders in respect of insured events exceed the carrying amount of insurance liabilities. This could occur if the frequency, severity or absolute amounts of claims are more than expected. Insurance risk is monitored regularly by the Company to establish if the levels are within the projected frequency bands. The insurance risks arising from insurance contracts are concentrated in Saudi Arabia. Insurance risk is influenced by the frequency, severity and absolute amounts of claims. Careful evaluation of risks through implementation of underwriting strategy, together with the use of reinsurance, reduce risk. The Company underwrites mainly property, accident, motor, medical, marine and group protection and savings risks. These are regarded as short-term insurance contracts as claims are normally advised and settled within one year of the insured event taking place. This diversification and short term nature mitigates risk. Property and Accident For property contracts the main risks are fire and business interruption. These contracts are underwritten by reference to the replacement value of the properties, contents insured and profits of the underlying businesses. The cost of rebuilding properties, replacing contents and the time taken to restart operations following business interruptions are the main factors that influence the level of claims. Motor For motor contracts the main risks are claims for death and bodily injury and the replacement or repair of vehicles. The level of court awards for deaths and to injured parties and the replacement costs of motor vehicles are the key factors that influence the level of claims. Medical For medical contracts the main risks are medical expenses incurred for treatment and illness. Marine For marine contracts the main risks are loss or damage to craft and accidents resulting in total or partial loss of cargo. Protection and Savings The Company writes Protection and Savings Policies and also writes Group Life including Group Credit Life and PHI policies which are categorised as Group Protection and Savings notwithstanding the absence of savings elements. The main risks for Protections and Savings Policies are morbidity and mortality of the insured. In group policies the main risks are mortality and morbidity of the insured compounded due to the concentration of lives. The Company engages in various levels of underwriting including declaration of health, medical questionnaire, reports from specialists and medical tests when required. Group size, the nature of activity carried out by the group, geographic mix and cultural background are all analysed. The business is protected by extensive reinsurance cover with low retention which affords protection from adverse experience, single large losses, multiple claims and concentrations of risk. Sources of uncertainty in estimation of future claim payments The key source of estimation uncertainty at the statement of financial position date relates to valuation of outstanding claims, whether reported or not, and includes expected claims settlement costs. The principal assumption underlying the liability estimates is that the Company’s future claims development will follow a similar pattern to past claims development experience. This includes assumptions in respect of average claim costs, claim handling costs, claim inflation factors and claim numbers for each accident year. Qualitative judgements are used to assess the extent to which past trends may not apply in the future, for example: one-off occurrence, changes in market factors such as public attitude to claiming, economic conditions: as well as internal factors such as portfolio mix, policy conditions and claims handling procedures. Judgement is further used to assess the extent to which external factors such as judicial decisions and government legislation affect the estimates. Considerable judgment by management is required in the estimation of amounts due to policyholders arising from claims made under insurance contracts. Such estimates are necessarily based on assumptions about several factors involving varying and possibly significant degrees of judgment and uncertainty and actual results may differ from management’s estimates resulting in future changes in estimated liabilities. Process used to decide on assumptions The process used to determine the assumptions for calculating the outstanding claim reserve is intended to result in neutral reasonable estimates of the most likely or expected outcome. The nature of the business makes it very difficult to predict with certainty the likely outcome of any particular claim and the ultimate cost of notified claims. Each notified claim is assessed on a separate, case by case basis with due regard to claim circumstances, information available from surveyors and historical evidence of the size of similar claims. Case estimates are reviewed regularly and are updated as and when new information is available. The estimation of IBNR is generally subject to a greater degree of uncertainty than the estimation of the cost of settling claims already notified to the Company, in which case information about the claim event is available. The estimation process takes into account the past claims reporting pattern and details of reinsurance programs. The ultimate cost of outstanding claims is estimated by using a range of standard actuarial claims projection techniques, such as Chain Ladder and Bornheutter-Ferguson methods. The main assumption underlying these techniques is that a Company’s past claims development experience can be used to project future claims development and hence ultimate claims costs. As such, these methods extrapolate the development of paid and incurred losses, average costs per claim and claim numbers based on the observed development of earlier years and expected loss ratios. Historical claims development is mainly analyzed by accident years, but can also be further analyzed by geographical area, as well as by significant business lines and claim types. Large claims are usually separately addressed, either by being reserved at the face value of loss adjuster estimates or separately projected in order to reflect their future development. In most cases, no explicit assumptions are made regarding future rates of claims inflation or loss ratios. Instead, the assumptions used are those implicit in the historical claims development data on which the projections are based. Additional qualitative judgement is used to assess the extent to which past trends may not apply in future, (e.g., to reflect one-off occurrences, changes in external or market factors such as public attitudes to claiming, economic conditions, levels of claims inflation, judicial decisions and legislation, as well as internal factors such as portfolio mix, policy features and claims handling procedures) in order to arrive at the estimated ultimate cost of claims that present the likely outcome from the range of possible outcomes, taking account of all the uncertainties involved. The premium liabilities have been determined such that the total premium liability provisions (unearned premium reserve and premium deficiency reserve) would be sufficient to service the future expected claims and expenses likely to occur on the unexpired policies as at the statement of financial position date. The expected future liability is determined using estimates and assumptions based on the experience during the expired period of the contracts and expectations of future events that are believed to be reasonable. | 33a |
| Disclosure of reinsurance/ retakaful risk [text block] | The Company effects reinsurance with other parties in the normal course of business in order to minimise its financial exposure to potential losses arising from large insurance claims. The reinsurance is affected under treaty, facultative and excess of loss reinsurance contracts. To minimise its exposure to significant losses from reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers. Reinsurers are selected using parameters such as minimum acceptable credit rating, reputation and past performance. Local companies who do not carry a formal credit rating are accepted to a limited degree provided they are registered with and approved by local Regulators. Although the Company has reinsurance arrangements it is not relieved of its direct obligations to its policyholders in the event that a reinsurer failed to meet its obligations. | 33b |
| Disclosure of currency risk [text block] | Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company primarily transacts in Saudi Riyals and at any time balances held in other currencies are of immaterial amounts only and therefore the Company believes that there is minimal risk of significant losses due to exchange rate fluctuations. | 33d |
| Disclosure of credit risk [text block] | 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. The maximum exposure of the Company to credit risk if a default was made by the counter party is equal to the carrying amount of these financial instruments. The Company seeks to limit credit risk with respect to customers by constant monitoring of outstanding receivables. The Company seeks to limit credit risk with respect to agents and brokers by, on a selective basis, setting credit limits, maintenance of cash deposits with the Company and monitoring of outstanding receivables. The Company seeks to limit credit risk with respect to bank time deposits by only dealing with reputable banks and by generally placing deposits for periods of not more than twelve months. To minimise its exposure to significant losses from reinsurer insolvencies, the parties with whom reinsurance is effected are required to have a minimum acceptable security rating level affirming their financial strength. The amounts due from reinsurers are contractually due within a maximum sixty days from end of quarter in which the payment is made for claims under treaty reinsurance and treaty retention excess of loss reinsurance and ninety days for claims under facultative reinsurance. | 33c |
| Disclosure of liquidity risk [text block] | Liquidity risk is the risk that the Company will not be able to meet its commitments associated with financial liabilities when they fall due. Liquidity requirements are monitored on a monthly basis and the Company has ensured that sufficient liquid funds are available to meet any commitments as they arise. | 33f |
| Disclosure of operational/ process risk [text block] | Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the processes, technology and infrastructure supporting the Company’s operations either internally within the Company or externally at the Company’s service providers and from external factors other than credit, market and liquidity risks (already noted above) such as those arising from legal and regulatory requirements and generally accepted standards of behavior. Operational risks arise from all of the Company’s activities. The Company’s objective is to manage operational risk so as to balance limiting of financial losses and damage to its reputation with achieving its objective of generating returns for investors and security for policyholders. The primary responsibility for the development and implementation of controls over operational risk rests with the Board of Directors who encompass controls in the following areas: Requirements for appropriate segregation of duties between various functions, roles and responsibilities; Requirements for the reconciliation and monitoring of transactions; Compliance with regulatory and other legal requirements; Documentation of controls and procedures; Ethical and business standards; Risk mitigation policies and procedures; and Requirements for the periodic assessment of operational risks faced and the adequacy of controls and procedures to address the risks identified. Senior Management ensures that the Company's staff has adequate training and experience and fosters effective communication related to operational risk management. | 33j |
| Disclosure of fair value of financial assets and liabilities [text block] | Determination of fair value Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between knowledgeable and willing market participants at the measurement date. Underlying the definition of fair value is a presumption that the enterprise is a going concern without any intention or need to liquidate, curtail materially the scale of its operations or undertake a transaction on adverse terms and that the transaction takes place either: - in the accessible principal market for the asset or liability; or - in the absence of a principal market, in the most advantageous accessible market for the asset or liability. The fair value of financial instruments is based where possible on quoted prices for marketable securities. The fair value of commission bearing items is estimated based on discounted cash flows using commission rates for items with similar terms and risk characteristics. For financial instruments where there is no active market, fair value is determined by reference to the market value of similar financial instruments or where this cannot be determined, they are calculated using a variety of valuation techniques. The assumptions are taken from observable market data where possible and where this is not possible judgment is relied upon to establish fair values. Fair value hierarchy The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments: Level 1: Quoted prices in active markets for the same or identical instrument that an entity can access at the measurement date; Level 2: Quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data; and Level 3: Valuation techniques for which any significant input is not based on observable market data. | 12 |
| Disclosure of comparative figures [text block] | Certain prior period amounts or balances may have been reclassified to conform with the current presentation. | 36 |
| Disclosure of board of director's approval of the financial statements [text block] | The Financial Statements were approved by the Board of Directors on 04 February 2020. | 37 |
