INDUSTRIES QATAR Q.P.S.C.
CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITOR'S REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2021
INDUSTRIES QATAR Q.P.S.C.
CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT For the year ended December 31, 2021
CONTENTS | Page |
Independent auditor's report | -- |
Consolidated statement of financial position | 1 |
Consolidated statement of profit or loss | 2 |
Consolidated statement of other comprehensive income | 3 |
Consolidated statement of changes in equity | 4 |
Consolidated statement of cash flows | 5 - 6 |
Notes to the consolidated financial statements | 7 - 81 |
Deloitte and Touche - Qatar Branch
Al Ahli Bank Building
Sheikh Suhaim Bin Hamad Street
Doha, P.O. Box 431
The State of Qatar
Tel: +974 443-41112
Fax:+974 4442 2131
www.deloitte.com
QR. 99-8
RN: 781/BH/FY2022
INDEPENDENT AUDITOR'S REPORT
To the Shareholders of
Industries Qatar Q.P.S.C.
Doha
Qatar
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Industries Qatar Q.P.S.C. (the "Company") and its subsidiaries (the "Group"), which comprise the consolidated statement of financial position as at December 31, 2021, and the consolidated statement of profit or loss, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2021, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards ('IFRSs').
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the other ethical requirements that are relevant to our audit of the Group's consolidated financial statements in Qatar, and we have fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter | How our audit addressed the Key | ||||||||
audit matter | |||||||||
Revenue recognition | Our procedures in relation to revenue | ||||||||
recognition from sales made by the | |||||||||
Total revenue recognized by the Group during | subsidiary and individual joint ventures | ||||||||
the year amounted to QR. 14,169 million. | are as follows: | ||||||||
International Standards on Auditing require us | • | Understanding | and | evaluating | the | ||||
to consider the risk of fraud in revenue | design and implementation of the | ||||||||
recognition. There is an inherent risk of fraud | internal | controls | over | revenue | |||||
given the high value of transactions and price | recognition of the Group and joint | ||||||||
fluctuations of the products affecting the | venture companies. | ||||||||
revenue recognized for the year. | |||||||||
• Understanding, evaluating and testing | |||||||||
As disclosed in note 9, the Group's share of the | the Group and joint venture | ||||||||
combined results from the joint ventures | companies' | revenue | accounting | ||||||
(QAPCO and QAFAC) of QR. 2,479 million for | policies against the requirements of | ||||||||
the year ended December 31, 2021 represents | IFRSs, our understanding of the | ||||||||
31% of profit for the year of the Group. | business | and | related | industry | |||||
practice. | |||||||||
The results of operations of these joint ventures | |||||||||
of QR. 2,209 million for the year ended | • Reviewing the terms of the revenue | ||||||||
December 31, 2021 represent 34% of the sales | contracts of the Group and joint | ||||||||
revenue generated by these joint ventures. | venture | companies | with | their | |||||
customers. | |||||||||
With the exception of one subsidiary, the | |||||||||
majority of the subsidiaries' and joint ventures' | • | Performing | test | of | details | to verify | |||
sales are made to one customer "Qatar | occurrence and accuracy of revenue | ||||||||
Chemical and Petrochemical Marketing and | transactions on a sample basis. | ||||||||
Distribution Company" ("Muntajat"). | |||||||||
• | Performing | substantive | analytical | ||||||
According to the revenue recognition policy, | procedure for each of the revenue | ||||||||
revenue from sale of products is recognized | streams and identify any significant | ||||||||
when the Group companies have transferred | deviations | from the | expectations | ||||||
the control of the products to the customer at | based on the understanding of each of | ||||||||
the point of delivery, where terms of delivery | the revenue | streams | business | ||||||
are specified in the contracts. | process and procedures. | ||||||||
We identified the recognition of revenue as a | • Obtaining and inspecting, on a sample | ||||||||
key audit matter, because of the high values of | basis, a confirmation including the | ||||||||
individual shipments. The potential errors in the | statements of the major customer of | ||||||||
occurrence and accuracy of revenue | the Group and joint venture | ||||||||
recognition at the Group, subsidiary and joint | companies, and agreeing them to the | ||||||||
venture company level could result in material | accounting records. | ||||||||
misstatements in the financial statements of the | |||||||||
Group when it recognises revenue and its |
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
Key Audit Matters (continued)
Key audit matter | How our audit addressed the Key |
audit matter | |
Revenue recognition (continued) | • Evaluating the disclosures relating to |
share of each joint venture's net income under | revenue to determine if they are in |
compliance with the requirements of | |
the equity method of accounting. | IFRSs. |
The following notes to the consolidated | |
financial statements contain the relevant | |
information related to the above discussed | |
matters. | |
Note 3 - Significant Accounting Policies | |
Note 4 - Critical Judgments and Keys Sources | |
of Estimation Uncertainty | |
Note 9 - Investments in Joint Ventures | |
Note 26 - Revenue | |
Other Information |
Management is responsible for the other information. The other information comprises the Board of Directors' Report but does not include the consolidated financial statements and our auditor's report thereon, which we obtained prior to the date of this auditor's report, and the Annual Report, which is expected to be made available to us after that date.
Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the complete Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRSs and applicable provisions of Qatar Commercial Companies Law, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
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IQ - Industries Qatar QSC published this content on 07 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 February 2022 16:59:06 UTC.