Appendix E — Contents of Financial Reports
• Annual reports must contain all the information required in this Appendix as well as a report issued by the administrator .
• Half-year reports must contain at the very least the Statement of Assets and Liabilities and the Investment Portfolio Statement.
• All reports must contain the comparative figures for the previous period except for the Investment Portfolio Statement.
• All reports must be prepared in accordance with International Financial Reporting Standards.
Statement of Assets and Liabilities:
The following must be separately disclosed
(a) Total value of investments
(b) Bank balances
(c) Dividends and other receivables
(d) Amounts receivable on subscription
(e) Bank loans and overdrafts or other forms of borrowings
(f) Amounts payable on redemption
(g) Distributions payable
(h) Total value of all assets
(i) Total value of all liabilities
(j) Net asset value
(k) Number of holdings in issue
(l) Net asset value per holding
Revenue Statement:
(a) Total investment income net of withholding tax, broken down by category
(b) Total other income, broken down by category
(c) Equalisation on issue and cancellation of holdings
(d) An itemized list of various costs debited to the CIU including:
a. Fees paid to the operator
b. Remuneration of the administrator , custodian and manager (as appropriate)
c. Fees paid to the investment advisor (if any)
d. Other amounts paid to any connected persons of the CIU
e. Director's fee and remuneration
f. Safe custody and bank charges
g. Auditor's remuneration
h. Interest on borrowings
i. Legal and other professional expense
j. Other
(e) Amounts transferred to and from the capital account
(f) Net income to be carried forward for distribution
Distribution Statement:
(a) Amount brought forward at the beginning of the period
(b) Net income for the period
(c) Interim distribution per holding and date of distribution
(d) Final distribution per holding and date of distribution
(e) Undistributed income carried forward
Statement of Movements in Capital Account:
(a) Value of the CIU as at the beginning of the period
(b) Number of holdings issued and the amounts received upon such issuance
(c) Number of holdings redeemed and the amount paid on redemption
(d) Any items resulting in an increase/decrease in value of the CIU including:
a. Surplus/loss on sale of investments
b. Exchange gain/loss
c. Unrealised appreciation/diminution in value of investments
d. Net income for the period less distribution
(e) Value of the CIU as at the end of the period
Notes to the accounts:
The following matters should be set out in the notes to the accounts:
(a) Principal accounting, investment and risk management policies
(b) Transactions with connected persons
(c) Details of any soft commission arrangements relating to dealings in the assets of the CIU
(d) Borrowings are secured or unsecured and the duration of the borrowings
(e) Contingent liabilities and commitments
(f) If the free negotiability of any asset is restricted by statutory or contractual requirements, this must be stated
Contents of the Auditor's Report
The report of the Auditor should state:
(a) Whether, in the auditor's opinion, the accounts prepared for that period have been properly prepared in accordance with the relevant provisions of the rules in this Module;
(b) Whether in the auditor's opinion, a true and fair view is given of the financial position of the CIU at the period-end, and of its financial performance and its cash flows for the period then ended, in accordance with International Financial Reporting Standards;
(c) Whether, in the auditor's opinion, proper books and records have been kept by the CIU and the accounts prepared are in agreement with the CIU's books and records; and
(d) Whether, in the auditor's opinion, the CIU has complied with all applicable laws and regulations.
(e) If an auditor of a CIU :
a. has reason to believe that the information provided to its participants or to the CBB does not truly describe the financial situation of the CIU , or
b. has reason to believe that there has been some breach of the CIU documents, applicable laws and regulations or the CBB's directions, or
c. has reason to believe that there exist circumstances which are likely to affect materially the ability of the CIU to fulfill its obligations to its participants or to meet any of its financial obligations under the CIU documents, applicable laws and regulations, or the CBB's directions, or
d. has reason to believe that there are material defects in the financial systems, controls or accounting records of the CIU , or has reason to believe that there are material inaccuracies in, or omissions from, any returns of a financial nature made by the CIU and/or, as may be appropriate, any one or more of the relevant persons , to the CBB, or
e. proposes to qualify any certificate which he is to provide in relation to the financial statements or returns of the CIU under Bahrain law and these rules
he shall report the matter to the CBB in writing, with a copy to the CIU and its relevant persons , as appropriate, without delay.
(f) The auditor of a CIU shall, if requested by the CBB, furnish to it, with a copy to the CIU and/or (as may be appropriate) the relevant persons , a report stating whether in his opinion and to the best of his knowledge the CIU has complied with the CIU documents, applicable laws and regulations, and/or any relevant directions of the CBB. The auditor may be requested by the CBB to supply it with information available to him as a result of his audit of the CIU .
Investment Portfolio
(a) Number or quantity of each investment together with the description and market value
(b) The total investment stated at cost
(c) The value of each investment as a percentage of the net asset value
(d) Statement of movements in portfolio investments since the end of the preceding accounting period
Performance Table
(a) A comparative table covering the last 3 financial years and including, for each financial year, at the end of the financial year :
a. The total net asset value; and
b. The net asset value per holding .
(b) A performance record over the last 10 financial years; or of the CIU has not been in existence during the whole of that period, over the whole period in which it has been in existence, showing the highest issue price and the lowest redemption price of its holdings during each of those years.