22Different Activities

Practical Examples The data below are for a company as at 31/12/2019; Zakat calculation is required accordingly. Balance Sheet (Statement of Financial Position) As of 31/12/2019 Assets SAR SAR Assets Current Assets Cash in hand and at banks Investments recognized at fair value through profit or loss Trade and other receivables Inventory Prepaid expenses and other receivables Total current assets Non-current assets Receivable from Related Parties Projects under construction Investments in subsidiaries Real estate investments Property, plant and equipment Goodwill and intangible assets Other long-term assets Total non-current assets Total assets Liabilities and Shareholders’ Equity Current liabilities SAR SAR Due to banks Accounts payable Accrued expenses and other credit balances Deferred revenue Advances from customers Dividend payable Provision for Zakat Obligations under a capital lease Current portion of term loan Total Current Liabilities Non - current liabilities Provision for end-of-service benefits Term loan Due from related parties Obligations under a capital lease Total non-current liabilities: Total Liabilities Shareholders’ equity Capital Statutory reserve Retained earnings Total shareholders’ equity Total liabilities and shareholders’ equity Income Statement SAR Revenues Cost of revenues Gross profit General, administrative and marketing expenses Share in (losses) of subsidiaries Share in results of invested companies by equity method Other loss, net Income from operations Finance charges, net Profit before Zakat and income tax Zakat Profit for the year For the period from January 01 2019 to 31 December 2019 Description Opening Balance Provided During the Year Utilized During the Year Closing Balance SAR SAR SAR SAR End-of-Service Benefits Provision for Doubtful Obligations Total Movement of Provisions Zakat Calculation Item Amount Adjustment to activity result SAR Net profit before Zakat Add: Provision for end-of-service provided during the year Add: Provision for doubtful liabilities provided during the year Total adjustment to activity result Additions to the Base Equity SAR Capital Statutory reserve Retained earnings less dividends Adjusted profit for the year Dividend payable Provision for doubtful obligations at the beginning of the year Obligations on the Zakat payer Deferred revenue Advances from customers Loans (obtained on 1/7/2019) (3,800,000 * 183/365) Due from related parties Obligations under a capital lease Provision for end-of-service - (Opening balance minus the utilized amount) Total additions to the base Deductions from Zakat Base SAR Projects under construction (assets) Investments in local subsidiaries after excluding shares in profit and loss Real Estate Investments (residential compounds for rent) Property, plant and equipment Goodwill and intangible assets Total assets deducted Zakat base excluding the adjusted profit for the year Zakat at 2.578% of the Zakat base without the adjusted profit for the year Adjusted profit Zakat at 2.5% of the adjusted profit Total Zakat 4. Adjustment to the Result of Business Activity Adjustment shall be made to the result of business (book profit or book loss) to reach the adjusted net profit for the following purposes: