Qatar Insurance Company Q.S.P.C.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

process of taking necessary actions needed to ensure full compliance with the amended law, including amending

the Articles of Association of the Company where necessary, and has concluded that any non-compliance as at the

reporting date does not have a material impact on the consolidated financial statements.

The consolidated financial statements have been prepared in accordance with IFRS Standards (IFRS) as issued by

the International Accounting Standards Board (IASB).

This is the first full set of the Group’s consolidated financial statements for the year ended on 31 December 2023

in which IFRS 17 Insurance Contracts. The related changes to material accounting policies are described in Note 3.

The consolidated financial statements provide comparative information in respect of the previous period.

each reporting period.

These consolidated financial statements are presented in Qatari Riyal (QR) which is the Company’s functional

currency. All amount have been rounded to the nearest thousand (QR ‘000), unless otherwise indicated.

The individual financial statements of the Group entities are presented in the currency of the primary economic

environment in which they operate (functional currency). For the purpose of these consolidated financial statements,

the results and financial position of each subsidiary are expressed in the functional currency of the Parent Company.

Qatar Insurance Company Q.S.P.C.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The new and amendments to Accounting Standards listed in the table above did not have any effect on the financial

statements of the Group except for followings:

Changes in accounting policies resulting from the adoption of IFRS 17 have been applied using a full retrospective

approach to the extent practicable. Under the full retrospective approach, at 1 January 2022 the Group:

Instead, IFRS 17 requires separate presentation of:

Qatar Insurance Company Q.S.P.C.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Qatar Insurance Company Q.S.P.C.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

its subsidiaries as at 31 December 2023. Control is achieved when the Group is exposed, or has rights, to variable

investee)

Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and

when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all

relevant facts and circumstances in assessing whether it has power over an investee, including:

Profit or loss and each component of other comprehensive income (OCI) are attributed to the shareholders of the

controlling interests are allocated against the interest of the Group except to the extent that the non-controlling

interests have a binding obligation and is able to make an additional investment to cover losses. These consolidated

financial statements are prepared using uniform accounting policies for like transactions and other events in similar

circumstances. When necessary, adjustments are made to the financial statements of the subsidiaries to bring their

accounting policies into line with the Group’s accounting policies.

acquisition method or as per under uniting of interests’ method where the transaction lacks substance as described

into a reporting entity that did not exist before; and

change in control and significant change in ownership.

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as

the aggregate of the consideration transferred, measured at acquisition date fair value and the amount of any non-

controlling interest in the acquiree.

For each business combination, the acquirer measures the non-controlling interest in the acquiree either at fair value

or at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are expensed and

Qatar Insurance Company Q.S.P.C.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

the scope of IFRS 9 Financial Instruments, is measured at fair value with the changes in fair value recognised in the

consolidated statement of profit or loss. Other contingent consideration that is not within the scope of IFRS 9 is

measured at fair value at each reporting date with changes in fair value recognised in the consolidated profit or loss.

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the

amount recognised for non-controlling interests and any previous interest held over the net identifiable assets

acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate

consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all

of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition

date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate

Where goodwill has been allocated to a cash-generating unit and part of the operation within that unit is disposed

of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when

determining the gain or loss on disposal of the operation. Goodwill disposed in this circumstance is measured based

on the relative values of the operation disposed of and the portion of the cash-generating unit retained.

Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be

impaired.

Impairment is determined for goodwill by assessing the recoverable amount of the cash-generating unit (or group

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control,

and continue to be consolidated until the date when such control ceases. The financial statements of the subsidiaries

are prepared for the same reporting period as the parent company, using consistent accounting policies.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

Qatar Insurance Company Q.S.P.C.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

the extent it reflects impairment in the related assets.

Associates are those entities in which the Group has significant influence. Significant influence is the power to

participate in the financial and operating policy decisions of the investee but is not control or joint control over

those policies. When necessary, adjustments are made to bring the accounting policies in line with those of the

Under the equity method, the investment is initially recognised in the consolidated statement of financial position

at cost and adjusted thereafter to recognise the Group’s share of profit or loss and other comprehensive income of

the associate or a joint venture. When the Group’s share of losses exceeds its interest in an equity-accounted

investee, the carrying amount of that interest, including any long-term investments, is reduced to zero, and the

recognition of further losses is discontinued except to the extent that the Group has an obligation or has made

payments on behalf of the investee.

after adjustments to align the accounting policies with those of the Group, from the date that significant influence

Intangible assets acquired in a business combination and recognised separately from goodwill are initially

recognised at cost which is their fair value as at the date of acquisition. Subsequent to initial recognition,

Qatar Insurance Company Q.S.P.C.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

loss when the asset is derecognised.

The current useful lives applied to the Group’s intangible assets are as follows:

Contracts under which the Group accepts significant insurance risk are classified as insurance contracts. Contracts

held by the Group under which it transfers significant insurance risk related to underlying insurance contracts are

classified as reinsurance contracts. Insurance and reinsurance contracts also expose the Group to financial risk.

Group issues life and non-life insurance to individuals and businesses. Non-life insurance products include property,

The Group does not issue any contracts with direct participating features.

The Group assesses its non-life insurance and reinsurance products to determine whether they contain distinct

components which must be accounted for under another IFRS instead of under IFRS 17. After separating any

distinct components, the Group applies IFRS 17 to all remaining components of the (host) insurance contract.

Currently, the Group’s products do not include any distinct components that require separation.

IFRS 17 requires the Group to determine the level of aggregation for applying its requirements. The level of

Qatar Insurance Company Q.S.P.C.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Portfolios are further divided based on expected profitability at inception into three categories: onerous contracts,

contracts with no significant risk of becoming onerous, and the remainder. This means that, for determining the

level of aggregation, the Group identifies a contract as the smallest ‘unit’, i.e., the lowest common denominator.

However, the Group makes an evaluation of whether a series of contracts need to be treated together as one unit

based on reasonable and supportable information, or whether a single contract contains components that need to be

portfolios are further divided by year of issue and profitability for recognition and measurement purposes.

facts and circumstances indicate otherwise. For contracts that are not onerous, the Group assesses, at initial

Qatar Insurance Company Q.S.P.C.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Qatar Insurance Company Q.S.P.C.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

reinsurance contracts that it holds, as:

Or