39 Restatement
Restatement
During the current year, Management has identified errors in the accounting of transactions related to the reinsurance business of medical and personal assurance for prior periods. During the quarter ended 31 March 2023, Management had carried out internal assessment (as well as engaged external consultant to review the reconciliation process) and assessed the impact and accounted for reversal of receivable from reinsurance contract aggregating AED 69,343,226 as at 31 December 2022 with corresponding impact to Accumulated Losses.
Further, management has also identified errors in computation of deferred acquisition cost asset (forming part of Insurance Contract Liabilities) as of 31 December 2022 and assessed the impact and accounted for reversal of AED 5,688,600 from deferred acquisition cost as at 31 December 2022 with corresponding impact to Accumulated Losses on retrospective basis.
In accordance with the requirements of ‘IAS 1 Presentation of Financial Statements’ and ‘IAS 8 Accounting policies, Changes in Accounting Estimates and Errors’, the prior period errors had been corrected retrospectively by restating the relevant comparative balances in these financial statements.