answer this question useing Emaar information:

1. Briefly explain the different types of investment companies make in the securities of other companies.

2. Locate a recent annual report of a public company that includes a footnote that describes an investment in securities available-for-sale.

3. Under what caption are the investments reported in the comparative balance sheets? Are they reported as current or noncurrent assets?

4. Are realized gains or losses reported in the comparative income statements?

5. Are unrealized gains or losses reported in the comparative statements and shareholders equity?

6. Are accumulated unrealized gains or losses identifiable in the comparative balance sheets? If so, under what caption? Why are unrealized gains or losses reported here rather in the income statement?

7. Are cash flow effects of these investments reflected in the companys comparative statements of cash flows? If so, what information is provided by this disclosure?

EMAAR information:

Emaar Properties PJSC and its Subsidiaries INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Period ended 30 June 2022 (Unaudited) - Certain amousts shown here do not correspond to the 2021 consolidared financial statements and reflect adjustments made as detailed in Nose 2.2. The accompanying notes 1 to 24 form an integral part of these interim condensed consolidated financial statements. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCLAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) 2.1 BASIS OF PREPARATION (continued) Basis of consolidation (continued) The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation af a subsidiary begins when the Groep obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liakilitien, income and expenses of a subsidiary acquired or disposed of during the year are included in the interim condensed consoliduted financial statements from the date the Group gains control antil the date the Group ceases to control the sabsidiary. Swbsidlaries Subsidiaries are fully consolidated from the date of acquisition or incorporation, being the date on which the Giroup obtains control, and continue to be consolidated until the date when such control ceases. The financial stakements of the subsidiarics are prepared using consistent accounting policics. All intra-group belances, Iransactions, untealised gains and losses resalting from intra-group transactions and dividends are climinated in full. Non-controlling interests (NCT) are measured initially at their proporticenate share of the acquirec's identifiable net assets at the date of acquisition. Changes in the Group's interest in a subsidiary that do not teselt in a loss of coetrol are accounted for as equity transactions, Share of compreherisive incomelloss within a subsidiary is attributed to the non-controlling ieterest evet if that results in a deficit balance. A change in the ownership interest of a subsidiary, without a loss of coetrol, is accoented for as as equity transaction. If the Group losses control over a subsidiary, it: Derecognises the assets (including goodwill) and liabilities of the subeidiary; Derecognises the carrying amount of any non-controlling interect; Derecognises the cumulative translation differences, recorded in equity; Recognises the fair value of the consideration received; Recognises the fair value of any investment retained; Recogaises any surplus of deficit in the interim coadensed consolidated incoene stateneat; and Reclassifies the Group's share of components previously recognised in other coenprehensive income to the iaterim condensed consolidated income statement or retained earnings, as appropriate. Assoclater and joint ventures Associates are companies in which the Groap has significant influence, but not coetrol, over the finuncial and operating policies. Joint ventures are those entities over whose activities the Group has joint control, establisbed by contractual agreement and requiring unanimous consent for strategic financial and opetating docisions whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The Group's investment in associates and jeint ventares are accounted for using the equity method of accounting. Under the equity method of accounting, investments in associates and joint ventures are carried in the interim condensed consolidated statement of financial position at cost, plus poss-acquisition changes in the Girocp's share of net assets of the associated and joint venture companies, less any impairment in value. The interim condensed consolidated income statement reflects the Group's chare of reelts of its ausociases and joint ventures. Uarealised profits and losses resulting from transactioes between the Geopp and associates and its joiat ventures are eliminated to the extent of the Group's interest in the associates and joint ventares. Uarealised losses are elieninated in the same way as unrealised gains, but only to the extent that there is no evidence of iangairment. Special purpose entities Special purpose entities are entities that are created to accomplish a narrow and well-defined objective. The firancial information of special purpose entities is included in the Group's interim condensed consolidated financial statements where the substance of the relationship is that the Group controls the special purpose entity and bence, they are accounted for as subsidiaries. 2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS The preparation of these interim condensed consolidated financial statements requires munagcticnt to muke judgnents, estimates and assumptions that affect the reported amoants of revenues, expenser, assets and liabilities, and the accompanying disclosures and the disclosure of contingent liabilities at the reporting date. Uncertaiaty about these assumptions and estimates could result in outcomes that require a matcrial adjustment to the carrying amount of the assets or liabilities affected in future periods. Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FRNANCLAL. STATEMENTS (continued) As at 30 June 2022 (Unaudited) 2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued) Estimates and their underlying assumptions are reviewed on an cogoing basix. Revisions to accounting estimates are recognised in the period in which the estimates are revised. The key judgments and estimates and assumptions that have a significant impact on the interim condensed consolidated financial statements of the Group afe discussed below: Judgraeats Timing of satisfaction of performance abligations The Group is required to assess each of its contracts with customers to determine whether performance obligations are satisfied over time or at a point in time in order to determine the appoopriate method of recognising revenue. The Group has assessed that based on the sale and purchase agreements entered into with cuatomers and the provisions of relevant laws and regulations, where contracts are entered into to provide real cstase assets to customer, the Group does not create an asset with as altemative use to the Group and wasuatly has an mfrecenble night is payment for performance completed to date. In these circumstances the Group recognises revetue over time. Where this is bot the case reveaue is recognised at a point in time. Defermination of transaction prices The Group is required to determine the transaction price in respect of each of its contracts with customers. In making such judgment the Group assess the impuct of any variable consideration in the contract, due to diseounts of penalties, the existence of any significant financing component in the contract and any soe-cash consideration in the contract. In determining the impact of variable consideration, the Group uses the "most- - Fkely amount" method in IFRS 15 Revenue from Contracts with Customers whereby the transaction price is determined by refereace to the single most likely amount in a range of possible consideration amounts. Transfer of control in cantracts with customers In cases where the Group determines that performance obligations ate satisfited at a point in time, revenue is recognised when control over the asset that is the subjeet of the contract is transferred to the castomet. In the case of contracts to sell real estate assets this is generally when the consideration for the unit has bect subusatially received and there are no impediments in the handing over of the unit to the customer. Thansfer of real estate assets from property, plant and equipment to dewilopment properties The Group sells real estate assets in its ortinary course of business. When the real estase assets which were peeviously classified as property, plant and equipment are identified for sale in the ondinury course of business, then the assets are transferred to development properties at their carrying value at the dute of ideatificative. Sale proceeds froen ach assets are recognised as revenue in accordance with IFRS 15. Revenue recognition for turnower reat The Group recognises income from turnover reat on the basis of audited tumver reports submitted by the tenants. In the absence of audited reports, management makes its own assessment abeut the teounts actieving or etceeding the stipulated tumovet in the lease contracts based on their hislorical performance. Classification of investment properties The Group determines whether a property qualifies as investment peoperty in accoedance with LAS 40 Investment Property. In making its judgment, the Group considers whether the property generates cash flows largely independently of the other assets held by the Group. The Group has determined that boecls and serviced apartment buildings owned by the Group are to be classified as part of property, plant and equipmert rather than investment properties since the Group also operates these assets. Operating fease commitments - Growp as lestor The Group has entered into commercial and retail property leases ea its investment pesperty pertfolio. The Group has deternined, based on an evaluation of the terms and conditions of the arrangements, that it retains all the significant risks and rewards of ownership of these properties and so accounts for the contracts as operating leases. 11 Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCLAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) 2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue recognition Revenue from cantracts wick customers The Group recognises revenue from contracts with customers based oa a five step model as set out in IFRS 15 Revenue from conbacts wirh customers: Step 1. Identify the contract(s) with a customer: A contract is defined as an agreement between two or more parties that creates enforceable rights and obligations and sets out the criteria for every contract that must be met. Step 2. Identify the performance obligations in the contract: A performance obligation is a promise in a contract with a customer to transfer a good or service to the customer. Step 3. Determine the transaction price: The transaction price is the amsount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, exelading amounts collected on behalf of thind partics. Step 4. Allocate the transaction price to the performance obligations in the contract: For a coatract that has more than one performance obligation, the Group will allocate the transaction price to each performance obligation in an amount that depicts the amount of consideration to which the Group expects to be entitled in exchange for satisfying each performance obligation. Siep 5. Recognise revenue when (or as) the entity satisfies a performance obligation. The Group satisfies a performance obligation asd recognises revenue over time, if one of the following criteria is met: 1. The customer simultaneously receives and consumes the benefits provided by the Group's performance as the Group performs; of 2. The Group's performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or 3. The Group's performance does not create an asset with an alternative use to the Group and the entity has an enforceable right to payment for performance completed to date. For performance obligations where one of the above conditions are not met, revenue is recognised at the point in time at which the performance obligation is satisfied. When the Group satisfies a performance obligation by delivering the promised goods or services it creates a contract asset based on the amount of consideration eamed by the performance. Where the amount of consideration received from a customer exceeds the amount of revenue recognised this gives rise to a contract liability. Revenue is measured at the fair value of the consideration reecived or receivable, taking into acteunt contractually defined terms of payment and excluding taxes and duty. The Group assesses its revenue amangerments against specific criteria to determine if it is acting as principal or agent. The Group has concluded that it is acting as a principal in all of its revenue arrangements. Revenue is recognised in the interim condensed consolidated income statement to the extent that it is probuble that the economic benefits will flow to the Group and the revenue and costs, if applicable, can be measured reliably. Development services Revense from rendering of development management services is recognised when the outcome of the transaction can be estimated reliably, by reference to the stage of completion of the development obligation at the reporting date. Where the outeome cannot be measured reliably, revenue is recognised only to the extent that the expenses incurred are eligible to be recovered. Customer loyalry prognamme The Groop operates a loyalty points programme, 'U by Emaar', which allows customers to accumalate points when they spend in any of the Group's hotel of leisure units. The loyalty points give rise to a separate performance obligation as they provide a material right to the customer. A portion of the transwetion price is allocated to the loyalty points awarded to customers based on relative stand-alone selling price and recognised as a contract liability until the points are redeemed. Revenue is recognised upon redemption of produets by the customet. When estimating the stand-alone selling price of the loyalty points, the Group considers the likelibood that the customer will redecm the points. The Group updates its estimates of the points that will be redeemed on a quarterly basis and any adjustments to the contract liability balance are charged against revenue. Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCLAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) 2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Intangible assets Intangible assets acquired separately are measured on initial rocognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. The useful lives of intangible assets are assessed as cither finite or indefinite. Intangible assets with finite lives are amortised over the estimated useful life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite usefal life are feviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future ceonemic benefits embodied in the asset are considered to modify the amortisation period of method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the interim condensed consolidated income statement. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinive life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made ca a prospective basis. Amortisation is charged on a straight-line basis over the estimated useful lives as follows: Customers relationship Sottware Goodwill and Brand is not amortised. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the interim condensed consolidated income statement when the asset is derecognised. Development properties Properties acquired, constructed or in the course of construction for sale in the ordinary coarse of business are classified as development properties and are stated at the lower of cost or net realisable value. Cost includes: - Frechold and leasehold rights for land; - Amounts paid to contractors for construction; and - Borrowing eosts, planning and desiga costs, costs of site preparation, professional fees for legal services, property transfer taxes, construction overheads and other related costs. Net realisable value is the estimated selling price in the ordinary course of the business, based on market prices at the reporting date and discounted for the time valae of money if material, less costs to completion and the estimated costs of sale. The cost of developmeat properties recognised in the interim condeased consolidated income statement on sale is determined with feference to the specific costs incurred on the property sold and an allocation of any non-specific costs based on the relative size of the property sold. The management reviews the carrying values of the developmext properties on an annoal basis. Inventories Inventories represent consumables and other goods relating to hospitality and retail business segments of the Groop. Inventonies are stated at the lower of cost and net realisable value with due allowance for any obsolete of slow-moving items. Costs are those expenses incurred in bringing each product to its present location and condition on a weighted average cost basis. Net realisable value is based on estimated selling price less any further costs expected to be incurred on disposal or completion. 21 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCLAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) 2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Derivative financial instruments The Group enters into derivative financial instruments to manage its exposure to interest rate risk and foreign exchange rate risk, including foreign exchange forward contracts. Derivatives are initially recognised as fair valoe at the dase the derivative contract is entered into and are subsequently remeasured to their fair valae at the end of each reporting date. The resulting gain or loss is recognised in the interim condensed consolidated income statement immediately, unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in the interim condensed consolidated income statement depends on the nature of the hedge relationship. The Group designates derivatives as hedges of interest rate risk and foreign currency risk of firm commitments (cash flow hodges). A derivative with a positive fair value is recognised as a financial asset a derivative with a negative fair value is recognised as a financial liability. Hedge accounting The Group designates certain bedging instruments as either fair value hedges or cash flow hedges. Hedges of interest rate risk and foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument and the hodged item, aloag with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermere, at the inception of the bedge and on an ongoing busis, the Group decuments whether the hedging instrument is highly effective in oflisetting changes in fair values or cash flows of the hedged item. The documentation includes identification of the hedging instrument, the bedged item, the nature of the risk being hedged and how tho Group will assess whether the hedging relationship moets the hedge effectiveness requirements (including the analysis of sourees of hedge ineffectiveness and how the bedge ratio is determind). A hedging relationship qualifies for hedge aceounting if it meets all of the following effectiveness recuirements: - There is "an economic relationship' between the bedged item and the hedging instrument; - The effect of credit risk does not 'deeninate the value changes' that resalt from that economic relationships - The hedge ratio of the hedging relationship is the same as that resulting from the quastity of the hedgod item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item. However, that designation shall not reflect an imbalance between the weightings of the hedged item and the bedging instrument that would create hedge ineffectiveness (irespective of whether recognised or not) that could result in an accounting outcome that would be inconsistent with the parpose of hedge accounting. Hedges that meet all the qualifying eriteria for bedge accounting are accounted for and further deseribed in the below sections. Fair value hedges The change in the fair valae of a hed ging instrument is recognised in the interim condensed coasolidated income statement as other expense. The change in the fair value of the bedged item attributable to the risk hedged is recorded as part of the earrying value of the hedged item and is also recognised in the interim condensed consolidaned income statement as other expense. For fair value hedges relating to iterns carried at amortised cost, any adjustment to carrying value is amortised through profit or loss over the remaining term of the bedge using the effective interest rate (EIR) method. The EIR amortisation may begin as soon as an adjustment exists and no later than when the hedged item ceases to be adjusted for changes in its fair value attributable to the risk being bedged. If the hedged item is derecognised, the unamonised fair value is recognised immediately in consolidated income statement. When an unrecognised firm commitment is designated as a hedged item, the subsequent curnalative change in the fair value of the firms commitment attribatable to the hedged risk is recognised as an asset or liabslity with an coeresponding gain of loss recognised in consolidated income statement. 22 Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCLAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) 2.4 SUMMARY OF SIGNIFICANT ACCOUNTING FOLICIES (coetimued) Financial assets (continued) Classificarion of fimancial assets The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow eharacteristics and the Group's besiness model for managing them. In order for a financial asset to be elassified and measured at amortised cost or fair value through OCI, it needs to give rive to cash flows that are 'solely payments of principal and interest (SPPT)' on the principal amount outstanding. This assesenent is referred to as the SPPI test and is performed at an instrument level. For the purposes of classifying financial assets, an instrument is an 'equity instrument' if it is a non-derivative and meets the definition of 'equity' for the issuer (under IAS 32: Financial lastruments Presentation) except for certain nonderivative puttable instruments presented as equity by the issoer. All other non-derivative financial assets are 'debt instruments + Equaly invedments All financial assets that are equity investments are measured at fair value cither through other coempechensive income or through profit or loss. This is an irrevocable choice that the Groop has made on adoption of 1FRS 9 or will make on subsequent acquisition of equity investments unless the equity investments are held for trading, in which case, they must be measared at fair value through profit or loss. Gain or loss on disposal of equity investments is not recycled. Dividend income for all equity imvertments is recorded through the interim cosdensed consolidated incoene statement when the right of payment has been established, except when the Grow benefits from sach proceeds as a recovery of part of the cost of the financial asset, in which case, soch gains are recorded in OC.1. Equity instruments designated at fair value through P\&L and OCl are not subject to impairment assessment. The Group elected irrevocably to elassify its non-listed equity investments as financial assets measured at fair value through other comprehensive income. Debr instrumens Debt instruments are also mezsured at fair value theough other coengechensive iaconse (OCT) unless they are clessified at amortised cost. They are classified at amortised cost ealy if: - the asset is beld within a business model whese objective is to bold the aset to colleet the contracnual cash flows; and the contractual ternas of the debt inctrumeat give rise, on rpecified dates, to cach flows that are solely payments of principal and interest on the principal cutstanding. Cash and cash equivalents For the purpose of the statement of eash flows, eash and cash equivalents coesist of eash in hand, bank balances and short-term deposits with an original maturity of three months ar less, net of eutstandieg fecilities payable on demand. Trade and unbilled receivables Trade receivables are stated at original invoice amount (unless there is a sigaificant financing component)less expected credit losses. When a trade receivable is uncollectible, it is written off agrinit provision for doubeffal debts. Subsequent recoveries of amounts previously written off are credited to the interim coodensed consolidated income statement. Services rendered but not billed at the reporting datc are accrued as per the terms of the agrectents as unbilled receivables. Foreign exchange gains and lasses The fair value of financial assets denominated in a forcign currexcy is determined in that forcign currency and translated at the spot rate at the end of the reporting period. The forcign ecchange component forms part of its fair value gain or loss. For financial assets classified as at fair value through profit or loss, the foreign exchange component is recognised in the interim condensed consolidated incorne statement. For financial assets designated at fair value through other comprebersive income any foreiga exchange component is recognised in the interim condensed consolidared statement of comprehensive income. For foreign currency denominated debt iastruments classified at amertised cost, the foreign exchange gains and losses are deternined based on the amortived cont of the asset and are recognised in the 'other gains and losses' line item in the interim condensed consolidated income stutement. Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) 2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Financial assets (continued) Derecognition of financial a asets A financial asset (or, when applicable, a part of a financial asset or part of a group of similar financial assets) is derecogrised when: - The rights to roceive cash flows from the asset have expired; or - The Groap retains the right to receive cash flows from the asset, but has assumed an oblization to pay them in full without material delay to a third party under a 'pass-through' arrangement, and - The Group has transferred its rights to receive cash flows from the asset and cither: - has transferred substantially all the risks and rewards of the asset, of has neither transferred nor retained substantially all the risks and rewards of the asset, bur has transferred control of the asset. When the Group has transferred its right to receive cash flows from an asset or has entered isto a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is rocognised to the extent of the Group's continuing involvement in the asset. Continuing involvement that takes the form of a guarantce over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. Impairment of financial assess The Group recognises an allowance for expected credit losses ("ECL") for all debt instruments and contract assets not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in aceordance with the contract and all the cash flows that the Group expects to receive. The shortiall is then discounted at an approximation to the asset's original effective interest rate. ECLs are recognised in two stages. For credit exposures for which there has nos been a significant increase is credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 -months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL.s, the Group considers reasonable and supportable information that is relevant and available without undue cost of effort. This iecludes both quantiative and pqalitative information asd analysis, based on the Group's historical experience and informed credit assessment, that includes forward-looking information. For trade and unbilled receivables and other receivables, the Group applies a simplified approach in calculating ECL. based on lifetime expected credit losses. The Growp has established a peovision matrix that is based on the Group's historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the econormic environment. The expected credit losses are recognised in the interim condensed consolidated income statement. The Group consider a financial asset to be in default when internal or external information indieates that the Group is unlikely to receive the oustanding contractual amoants in fall before taking inte account any credit enhancements beld by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. At each reporting date, the Group assesses whether financial assets carried at ansortised cost and debt securities at FVOCl are credit impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data: - significant financial difficulty of the debtor; - a breach of contract such as a default or being more than 90 days past due; - the restructuring of a loan of advance by the Group on terms that the Group woald not consider otherwise: - it is probable that the debtor will enter bankruptey or other financial reorganisation; of - the disappearance of an active market for a security because of financial difficulties. 25 Fair value measurement (continued) - Level 1 - Fair value measurements are those derived from quoted prices in an active market (that are unadjated) for identical assets or liabilities. - Level 2 - Fair value measurements are those derived from inguts other than qooted prices incladed within Level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (Le. derived froan prices). liability that are not based on observable market data (unobservable inputs). For assets and liabilities that are recognised in the interim condensed consolidated financial statements oe a recurring basis, the Groap determines whether transfers have occurred between Levels in the hierarchy by ro-assessing categorisation at the end of each reporting period. Fot the perpose of fair value diselosures, the Group has determined classes of assets and liabilities on the busis of the nature, characteristics and risks of the asset or liability and the level of the fair value hictarchy as explained above. 3 SFGMENT INFORMATION Managensent mocitors the operating results of its business segmeats separasely for the purpose of malking decibioes about resource allocation and performance assessment. Segment performance is evaluated based on operating peofit or loss and is measured consistently with operating profit or loss in the interim condensed consolidated financial statements. Business segments For management purposes, the Group is organised into three major segments, namely, real estite (develop and sell) condominiums, villas, commercial units and plots of land), leasing and related activities (develon, lease and manage malls, retail, commercial and resideatial spaces) and hospitality (develop, own and ior manage botels, serviced apurtmeats and leisure activities). Other segments include businesses that individually do not meet the criteria for a reportable segment as per IFRS 8 Operaning Segments. These businesses are property management and utility services and investments in providers of financial services. Revenue from sources other than property sales, leasing, retail and related activities and bospitality are incladed in other opcrating income. Geographic segments The Group is currently eperating in number of countries outside the UAE and is engagod in developmeat of several projects which have significant impact on the Groep results. The domestic segment inclades business activities and operations in the UAE and the international segment includes business activities and operations outside the UAE (including export sales). Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) 3 SEGMENT INFORMATION (continued) Business segments (continued) Six-month period ended 30 June 2021 (Restated*): Other segment information Capital expenditure (Property, plant and equipment and investment properties) Depreciation (Property, plant and equipment, investment properties and right of use assets) \( \underline{138,370} \quad \stackrel{388,586}{\hline} \quad \stackrel{107,385}{26,206} \) 660,547 Emaar Properties PJSC and its Subsidiaries Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) 7,463,883 thousands), including cash held by entity under beld for sales of AED 51,227 thousands (refer note 4) which is net of facilities obtained from various commercial banks and which are repayable on demand (refer note 16). Cash at banks earn interest at fixed rates based on prevailing bank deposit rates. Short-term fixed deposits are made for varying periods between one day and three months, depending on the cash requirements of the Group, and earm interest at the respective short-term deposit rates. As at the reporting date, bank balances and cash include an amount of AED 7,982,439 thousands (31 December 2021 (Restated): AED 5,959,567 thousands) with banks for advances received from customers against sale of development properties which are deposited into escrow accounts and unclaimed dividends. These deposits balances are not under lien. Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) 17 A. Emaar Sukuk Limited: Emaar Sukuk Limited (the "Issuer"), a limited liability company registered in the Cayman Islands and a wholly- owned subsidiary of the Group, has established a trust certificate issuance programme (the "Programme") pursuant to which the Issuer may issue from time to time ap to USD 2,000,000 thousands (AED 7,346,000 thousands) of trust certificates in series Series 3: On 15 September 2016, the Issuer had issued the third series of the trust certificates (the "Sakuk 3") amounting to USD 750,000 thousands (AED 2,754,750 thousands) under the Programme. The Sukuk 3 is listed on NASDAQ Dubai and is due for repayment in 2026 . Sukuk 3 carries a profit distribution at the rate of 3,64% per annum to be paid semi-annually. The carrying value of 5 ukuk 3 is as follows: Sukuk liability as at period/ year-end Series 4: On 17 September 2019, the Issuer has issued the fourth series of the trust certificates (the "Sukuk 4") amounting to USD 500,000 thousands (AED 1,836,500 thousands) under the Programme. The Sukuk 4 is listed on NASDAQ Dubai and is due for repayment in 2029 . Sukuk 4 carries a profit distribution at the rate of 3.875% per annum to be paid semi-annually. The carrying value of Sakuk 4 is as follows: Sakuk liability as at period/ year-end Emaar Properties PJSC and its Subsidiaries - Certain amounts shown here do not correspond to the interim condensed consolidated financial statements of prior period and reflect adjustments made as detailed in Note 2.2 The accompanying notes 1 to 24 form an intogral part of these interim condensed coesolidaned finascial statements. To the best of cerr boowledge, the interim condensed consolidated fieancial statenents faily present, in all material respects, the interim condensed consolidated financial position, resulzs of operation and irteri- condensed consolidated cach thws of the Group as of, and for the period ended 30 lane 2022 , The interim condensed consolsdated finascial statements were authoeised foe insue by the Board al Diectoes and signedon their behalf by: - Cetain amounts shawt here do not correspond is 20.1 consolidated finaxcial tatements asd reflect acjustmenes made as detailed in Note 22 The acoomparyiag notes 1 to 24 form an integral part of these interim condenued onnolideted fiaancial statement Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCLAL STATEMENTS (continued) As at 30 June 2022 (Unatited) deferred tax assets that can be recognised, based upon the likely timing and the level of funure taxable profits together with future tax planning strategies. 2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS (contiaued) Estimations and assumptions (contineed) Fair value measurement of financial instruments When the fair values of financial assets and financial liabilities recorded in the statement of finuncial position cannot be measured based on quoted prices in active markets, their fair value is measured asing valuation techniques including the discounted cash flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Impairment of now-financial assets. The Group assesses whether there are any indicators of impairment for all non-financial assets at each reporting date. The non-financial assets are tested for impairment when there are indicators that the camying amoents may not be recoverable. When value in use calculations are undertaken, management estimates the expected futare cash flows from the asset or cash-generating unit and chooses a suitable discount rase in order to calculate the pecsent value of those cash thows. Development properties are stated at the lower of cost and estimated net realisable valoc. The cost of work-in-progress comprises construction costs and other related direct costs. Net realisable value is the estimatod selling price in the ordinary coarse of business, less cost of completion and selling cxpenses. Impact of Covid-19 In January 2020, the World Health Organization ("WHO") announced a global health emergency because of coconavirus (the "COVID-19 Outbreak"). During March 2020, the WHO classified COVID-19 Outberk as a pasdemic based on the rapid increase in exposure and infections across the world. The pandemic nature of this virus had repalted in global travel restrictions and lockdowz in most countries of the world impacting jurisdictioes and segments in which the Group operates. Compared to 2020 wherein the COVID-19 Outbreak had impacted adversely, during 2021 and in the current reporting period, there bas been a significant improvement in operating results of the Grocp across key segments and goographies of the Group as the impact of pandemic started to ease in geographies where the Crocp operates. Although the glabal ecooomic situation with relation to COVID-19 remains fluid and will be determined by factors that continue to evolve, sach as resurgence of variants, saccess of support measures introduced by governments and the effectiveness of public policies intended to contain the spread. The Group's strategy and its various cost optimization initiatives. As per Group's current assessment, the impact of the COVTD-19 during the cument period on the value of development properties, investment properties, and property, plant and equipenent and the ability of these assets to generate income, either from sale, operation of leasing is limited. The Giroup's assessment considers the level of pundernic related economic impact, actual and expected recovery including occupancy and carning levels of propertics. This will be periodically revisited and revised, for any adverse impact. External valuers report to assess impairment on non-financial assets and net realitulle value of development properties As at 31 December 2021 valuations performed by certain extermal valaers continued to state a clause over material valuation uncertainty due to the market distuption eaused by the COVID-19 pundemic, which is consistent with the guidance issued by RICS Valuation Global Standards. Consequently, as a result, less certainty and a higher degree of caution should be attached to valuations performed by external valuers. Abeit, this clause does not invalidate the valuation nor does it inclicate that the valuation cannot be relied upon, but implies that there is substantially more uncertainty than under normal market conclitions. The valuation of properties located in various geegraphies takes into account the level of pandemic, related economic impact, expected recovery iacluding occupancy and earning levels of properties. As a resalt of the continued uncertainty, these assumptions may be revised significantly in the subsequent periods. Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCLAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) 2.3 CHANGES IN THE ACCOUNTING POLICIES AND DISCLOSURES (a) New standards, interpretations and amendments in issue and effective The accounting policies adopted in the preparation of the interim condensed consobidated financial staternctits are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2021, except for the adoption of new standards and interpretations effective as of 1 latmary 2022 Although these new standards and amendiments apply for the first time in 2022, they do not have a material inpact on the interim condensed consolidated financial statements of the Group or the annual consolidased financial sutements of the Group. The new standards, interpretations and amendments in issue and effective are mentioned below: (b) Standards, amendments and interpretations in issue but net effective The new and amended standards and interpretations that are issued, but not yet effective, up to the date of ssrance of the Group's interim condensed consolidated financial statements are diselosed below. The Group does not expect the adoption of the above new standards, amendments and interpretations to have a material impact on the future consolidated financial statements of the Group. Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) 4 NET ASSETS HELD FOR SALE During the current period, the Group management committed to a plan to divest online retail business, part of business segment relating to "Leasing, retail and related activities". Accordingly, assets and liabilities directly associated with such online retail business were classified as held for sale. Divestment efforts are ongoing and management expect it to materialise it within 12 month from reporting date. The major classes of assets and liabilitics (after Group elimination) are as follows: Assets Other than (i) below, loans to associates and joint ventures are unsecured, repayable on demand f as per the terms of the agreement and do not carry any interest. (i) As per the terms of the restructuring agreement entered in 2014,20 hs of the principal amoant of the loan was sopaid by Amlak in 2014,65% is restructured into a logg term facility mataring in 12 years carrying a profit rate of 2% per annum and 15% is restractured into a 12-year contingent convertible inctrument. - Reperesents Group's imvestment in associates (a) Includes gain of AED 233,406 thousands resulting from restructuring at Emaar, The Economic City, which is recognised as part of other income during the current period. The Group has the following effective osanership intercst in its signifficant associates and joint ventures: Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) 15 TRADE AND OTHER PAYABLES 43 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) 16 INTEREST-BEARING LOANS AND BORROWINGS (continued) The Group has the following secured and unsecured interest-bearing loans and borrowings" Secured USD 400,000 thousands (AED 1,469,200 thousands) of Syndicated facility, secured against certain investment properties owned by the Group in Turkey, carries interest at LIBOR plus 1.50\% per annum and fully repayable in 2022. Unsectared - The Group had drawdown USD 215,000 thousands (AED 789,695 thousands) out of USD 1,500,000 thousands (AED 5,509,500 thousands) Revolving Credit Line Facility (the "Facility") availed from the syndication of commercial banks in UAE, carrics interest/ profit at LIBOR plas 1.25% per annum and is repayable by 2025 . The facility is presented in the interim condensed consolidated financial statements at AED 782,076 theusands net of unamortised directly attributable transaction cost. The Group had drawdowz USD 743,820 thousands (AED 2,732,051 thousands) out of USD 1,000,000 thousands (AED) 3,673,000 thousands) Revolving Credit Line Facility (the "Facility") ayailed from the syzdication of commercial banks in UAE, carries profit at LIBOR plus 1.25% pet annum and is repayable by 2025. The facility is presented in the interim condensed consolidated financial statements at AED 2,731,112 thousands net of unamortised directly attributable transaction cost. - AED I80,000 thousands represent short term facilities obtained from a commercial bank in the United Arab Emirates bearing interest of 1 month EIBOR phus 1% per annum and is due in 2022. - AED 9,735 thousands represent facilities obtained from commercial banks in the United Arab Emirates bearing interest of I moeth EIBOR plus Ite per annum and is due in 2022. - EGP 3,067,800 thousands (AED 599,433 thousands) of funding facilities from commercsl banks in Egypt, bearing interest at rates ranging up to 11.75% and repayable by 2027. USD 7,000 thousands (AED 25,711 thousands) loans from commercial banks in Lebanon, bearing interest up to 3.65% per anmum and repayable in 2023 . - SAR 150,000 thousands (AED 147,000 thousands) loan from a commercial bank bearing interest at SIBOR plus 1% per anmum and are repayable in 2023. - INR 36,902,913 thousands (AED 1,716,280 thousands) loans from comsmercial banks in India, bearing interest from 5.80% to 9.50% per annum and repayable by 2026 . Emaar Properties PJSC and its Subsidiaries NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCLAL STATEMENTS (continued) As at 30 June 2022 (Unaudited) 17 SUKUK (continued) A. Emaar Sukuk Limited (continued): Series 5: On 6. July 2021, the Issuer has issoed fifth series of trust certificates (the "Sukck 5") amounting to AED 1,836,500 thoussnds (USD S00,000 thousands) under the Programme. The Sukuk 5 is listed on NASDAQ Dubal and is doe for repayment in 2031. Sukuk 5 carries a profit distribution at the rate of 3.7% per annum to be paid semi-atnually. The carrvine value of Sukuk 5 is as follows: B. EMG Sukuk Limited: On 18 June 2014, the EMG Suluk Limited (the "Issuer"") a limited liability company regintered in the Cayman Islands and a wholly-owned subsidiary of Emaar Malls Group PJSC ("EMG"), has issued trus certificates (the "Suks") amoucting to USD 750,000 thousands (AED 2,754,750 thousands). The Sukuk is listed on the NASDAQ Dubuli and is due for repayment in 2024. The Sukuk earries a profit distribution rate of 4.6% per annum to be puid semi-astnally. The carrying value of Sukuk is as follows: The shareholders of the Company have resolved, in its Annual General Meeting held en 20 April 2022, to initine a share buyback program by Emaar Properties PISC of not more than 1\% of its issaed share capital. The propored buyback scheme is subject to regulatory approvals. Further, subject to applicable regulatory approval, Bourd of Directors of the Company woald decide whether to sell or cancel these shares. The company has paid a cash dividend of AED 0.15 per share for 2021 as approved by the sharcholders of the Company as the Annual Gieneral Meeting of the Company beld on 20 April 2022. 21 RELATED PARTY DISCLOSURES The Group in the normal course of business enters into transactions with indrvidaals and other entities that falls within the definition of related party. The Group's related parties include key management personnel, entities held under common costrol, associates, joint ventures and others. The Group is partly owned by Investment Corporate of Dubai ("ICD"), an entity owned by the Government of Dabai ("Covernment"). The Group enters into