22Different Activities

Definition of the Sector This sector encompasses the production and distribution of information and cultural products, as well as the provision and means of transport and distribution of such products. It also includes the transmission and distribution of data, information and communications technology activities, data processing, and other information service activities. The sector includes the following activities: ● Publishing activities. ● Production of films, videos, television programs, sound recordings, and music publishing. ● Programming and broadcasting activities. ● Telecommunications. ● Computer programming, consultancy, and related activities. ● Information service activities. The Most Important Items in the Statement of Financial Position for the Information and Communication Sector and Their Zakat Treatment Item Item Nature Zakat Treatment Judgment Non-current assets Contract costs Representing costs incurred to meet contracts when conditions are met Non-deductible assets Not deductible from the base as they are Zakatable assets Production of audiovisual materials Representing rights to produce audiovisual materials and recordings Deductible assets Deductible from the base as they are non- zakatable assets Contract assets Representing assets in exchange for transferring goods or services to customers prior to payment of the compensation or before maturity Represent assets in exchange for transferring goods or services to customers prior to payment of the compensation or before maturity Non-deductible assets Not deductible from the base as they are Zakatable assets Communication networks and equipment Representing the equipment necessary to operate telecommunication services Deductible assets Deductible from the base as they are non- zakatable assets IT systems and servers Representing the equipment necessary to operate telecommunication related services Deductible assets Deductible from the base as they are non- zakatable assets Intangible Assets - Telecommunication License Representing a telecommunications license to operate in a particular area Deductible assets Deductible from the base as they are non- zakatable assets Intangible assets - Irrevocable use rights Is the right to use part of the terrestrial transmission cable Deductible assets Deductible from the base as they are non- zakatable assets Telephones and equipment at the customer’s site Representing the equipment at the customer’s premises to provide the service while the ownership is for the company Deductible assets Deductible from the base as they are non- zakatable assets Prepaid cards and recharge Representing prepaid and recharge cards ready for sale to customers Non-deductible assets Not deductible from the base as they are Zakatable assets Restricted in-kind assets associated with government grants Representing the value of properties and equipment related to restricted government grants Deductible assets Deductible from the base as they are non- zakatable assets Telecom licenses Representing the cost of operating licenses and service charges Deductible assets Deductible from the base as they are non- zakatable assets Non-current liabilities Deferred revenue from government grants Representing the current portion of conditional government grants External sources of funds utilized in financing deductible asset Added to the Zakat base to meet deductible assets Other financial obligations Representing miscellaneous liabilities External sources of funding utilized in financing deductible asset Not added to the Zakat base unless they mature after more than 354 days Non-current liabilities Deferred government grant revenues Representing the non-current portion of conditional government grants External sources of funds utilized in financing deductible asset Added to the Zakat base to meet deductible assets Contract obligations Representing deferred services revenue External sources of funds utilized in financing deductible asset Added to the Zakat base to meet deductible assets