Zakat Base Addition

Equity and its equivalents: Equity items are considered sources of funds for entities and are a fundamental component of the Zakat base. All equity items are added to the Zakat base at the end-of-period balance. Equity includes all items classified as equity in the Zakat payer's financial statements, as well as items reclassified as equity for Zakat purposes, such as provisions treated as equity and profits under distribution. The detailed provisions for adding equity and its equivalents to the Zakat base will be reviewed starting from paragraph 3 of this Guideline. 2. Liabilities Within the Limits of Deducted Assets: Liabilities are considered entities’s sources of funds. Adding liabilities required to be added to the Zakat base is done at the end-of-period balance. The process of adding liabilities involves several steps and treatments, including corrective measures for adding liabilities-if applicable- which refers to placement procedures when deducting a current asset or when a non-current asset is not deducted, as will be detailed in paragraph 4 of this Guideline. Article 29 of the regulations includes the liabilities required to be added to the Zakat base as follows: 1. Non-current liabilities, which include the following: Debts classified as non-current at the end-of-period balance, whether from prior years or added during the year; such as advance payments from customers of the Zakat payer, and issued bonds and instruments. Provisions representing a settled debt owed to non-owners; such as: end-of-service benefits provision, vacation balance provision, and similar provisions. Deferred tax liability. Proven contract liabilities item according to approved accounting standards. Lease contracts liabilities. Negative derivative financial instruments. 2. Article 29 also includes the addition of current liabilities exclusively in the following cases: If a current asset is deducted, the addition of current liabilities is made in accordance with