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PRU 2.2.17 Guidance for Form PIB 4 — Profit and Loss — Islamic Financial Institutions

Instructional Guidelines

Item No. Item Guidance
4.1.1 Income from jointly financed accounts Authorised Firms should include in respect of this item income earned on funds from jointly financed investment accounts (i.e. unrestricted PSIAs and self-financed). The income should be gross before allocating to the unrestricted PSIAs and the bank's mudarib fee.
4.1.2 Allocated to unrestricted account holders Authorised Firms should include in respect of this item the amount allocated from PIB 4 Item No. 4.1.1 above to the unrestricted PSIAs as their share of the income. It should be mostly be a negative number.
4.1.3 Authorised Firm's Mudarib fee Authorised Firms should include in respect of this item the amount of the Mudarib fee that they are entitled to receive for the management of the unrestricted PSIAs.
4.1.4 Authorised Firm's other fees Include any amounts owing to the Authorised Firm as fees for managing PSIAR accounts.
4.1.5 Net income from Jointly Financed Accounts and Mudarib Fees Sum of PIB 4 Item Nos. 4.1.1 + 4.1.2 + 4.1.3 + 4.1.4.
4.2.1 Authorised Firm's income from its own non-financing activities Authorised Firms should include in respect of this item the income received from non-financing activities (e.g. Murabaha sales) that results from the employment of the Authorised Firm's own funds and current accounts. The income should have been generated from funds that have been employed separately from the PSIA funds.
4.2.2 Authorised Firm's income from its own financing and investment activities Authorised Firms should include in respect of this item the income received from financing and investment activities that results from the employment of the Authorised Firm's own funds and current accounts. The Bank is solely entitled to profits/ (losses) from these activities.
4.2.3 Net fees and commission income Authorised Firms should include in respect of this item the income received for services provided such as trade related letters of credit, Corporate advice, Investment management and trustee services, Kefala (guarantees) and indemnities.
4.2.4 Other operating income Include income from any other source not included in any of the above.
4.2.5 Total income from Authorised Firm's own funds Sum of PIB 4 Item Nos 4.2.1 + 4.2.2 + 4.2.3 + 4.2.4.
4.3 Staff costs Include costs such as:
•   Wages and salaries;
•   Social security contributions;
•   Contribution to any pension schemes (employer's share);
•   Costs of staff benefits paid.
4.4 Premises and equipment costs Should include rent, property tax, lighting, heating, maintenance costs etc.
4.5 Depreciation and amortisation Charges relating, for example, to depreciation / amortisation of property, plant and equipment and other amounts written off in respect of tangible and intangible fixed assets.
4.6 Provision for losses on Islamic contracts Provision for losses on Islamic Contracts: refer to FAS 11 of AAOIFI which requires the inclusion of bad and doubtful Islamic Financing and non financing contracts and investments.
4.7 Other provisions Include here all other provisions other than for Islamic contracts.
4.8 Other operating expenses Include all other expenses not included in any of the above.
4.9 Operating profit from ordinary activities Sum of PIB 4 Item Nos. 4.1.5 + 4.2.5 - 4.3 - 4.4 - 4.5 - 4.6 - 4.7 - 4.8.
4.10 Net income from subsidiaries and associated companies Report share of profits and losses of from subsidiaries and associated companies.
4.11 Profit (loss) from extraordinary items For example:
Profit or losses on sale or termination of an operation;
Profits or losses on disposal of fixed assts.
4.12 Profit (loss) before Zakah and tax Sum of PIB 4 Item Nos. 4.9 + 4.10 + 4.11.
4.13 Zakah Include Zakah amount calculated with reference to FAS 9 of AAOIFI.
4.14 Tax on profit / loss Any amount that has been or is expected to be paid in taxation.
4.15 Profit (loss) after Zakah and tax Sum of PIB 4Item Nos. 4.12 - 4.13 - 4.14.
4.16 Minority interests For example, when a group has one or more subsidiaries which are only partially owned by the group.
4.17 Net profit / (loss) The amount of profit (loss) that could be distributed to shareholders or retained for future use within the company. Sum of PIB 4 Item Nos. 4.15 - 4.16.
4.18 Dividends, and other distributions, declared or paid The amount to be distributed in the current year to shareholders out of the profits of a company.
4.19 Other adjustments Any other adjustments that affect the retained profits.
4.20 Retained profits for the reporting period Sum of PIB 4 Item Nos. 4.17 - 4.18 - 4.19.