22Different Activities

Definition of the Sector This sector includes educational activities at all levels and for all professions, delivered both orally and in writing, as well as through radio, television, and other means of communication. It encompasses education in various institutions within the general education system at all levels, as well as adult education, literacy programs, and similar initiatives. The sector also includes schools, military academies, prison schools, and other similar institutions, depending on their respective levels. It covers general education, special education, and specialized education for students with physical and intellectual disabilities. Additionally, this sector includes education focused on sports and recreational activities. The Most Important Items in the Statement of Financial Position for Mining and Quarrying Sector and Their Zakat Treatment Item Item Nature Zakat Treatment Judgment Current assets Due students’ tuition installments and returned checks Representing receivables from the provision of educational services Non-deductible assets Not deductible from the base as they are Zakatable assets Checks under collection and payment notes Representing receivables due for collection and payment notes Non-deductible assets Not deductible from the base as they are Zakatable assets Non-current assets Roads and land improvements Representing capitalization of roads improvement in the workplace Deductible assets Deductible from the base as they are non- zakatable assets. 7.2 Practical Examples Balance Sheet (Statement of Financial Position) as of 31/12/2019 Assets SAR SAR Assets Current assets Cash in hand and at banks Inventory Trade receivables Due students’ tuition installments and returned checks Checks under collection and payment notes Prepayments Total current assets Non-current assets Property and equipment Projects under construction Intangible assets Total non-current assets Total assets Liabilities and Shareholders’ Equity SAR SAR Current liabilities Long-term loans - Current portion Prepaid revenue Trade payables Accruals and other current liabilities Total current liabilities Non-current liabilities Long-term loans - Non-current portion Provision for end-of-service benefits Total non-current liabilities Shareholders’ equity Capital Statutory reserve Retained earnings Total shareholders’ equity Total liabilities and shareholders’ equity Income Statement for the Period from 1/1/2019 to 31/12/2019 SAR Revenue Cost of revenues Gross profit General and administrative expenses Income from operations Financing charges Profit before Zakat and income tax Zakat Profit for the year Description Opening Balance Provided During the Year Utilized During the Year Closing Balance SAR SAR SAR SAR Provision for end-of- service benefits Total Movement of Provisions Note: The balance of retained earnings was distributed throughout the year. Zakat Calculation Item Amount Adjustment to activity result SAR Net profit before Zakat and income tax Add: Provision for end-of-service provided during the year Total adjustment to activity result Additions to the Base Shareholders’ equity SAR Capital Statutory reserve Retained earnings Dividend distribution during the year Total Liabilities on the Zakat payer Long-term loans Provision for end-of-service benefits - opening balance minus the amount utilized during the year Total external sources of funds subject to Zakat Total additions to the base Deduction from Zakat Base SAR Property and equipment Projects under construction Intangible assets Total deductible assets Zakat base without the adjusted profit for the year Adjusted profit Zakat at 2.5% of the adjusted profit Total Zakat 8. Administrative and Support Services Sector