NOTES TO FINANCIAL STATEMENT
| Land | Building | Office equipment and decoration | Computers and software | Motor vehicles | Capital work
in progress* |
Total |
|
| AED | AED | AED | AED | AED | AED | AED | |
| Cost | |||||||
| At 1 January 2022 (Restated) | 10,390,000 | 28,571,039 | 6,111,375 | 3,370,661 | 302,143 | 6,466,653 | 55,211,871 |
| Additions during the year | – | – | 41,077 | 215,185 | 403,495 | 453,466 | 1,113,223 |
| At 31 December 2022 | 10,390,000 | 28,571,039 | 6,152,452 | 3,585,846 | 705,638 | 6,920,119 | 56,325,094 |
| Additions during the year | – | – | 280,240 | 142,204 | – | 383,702 | 806,146 |
| (Deletions) during the year | (10,390,000) | (28,571,039) | – | – | (240,000) | – | (39,201,039) |
| At 31 December 2023 | – | – | 6,432,692 | 3,728,050 | 465,638 | 7,303,821 | 17,930,201 |
| Accumulated depreciation | |||||||
| At 1 January 2022 | – | 2,698,376 | 5,814,848 | 3,135,080 | 301,750 | – | 11,950,054 |
| Charge for the year | – | 952,368 | 203,051 | 166,341 | 42,933 | – | 1,364,693 |
| At 31 December 2022 | – | 3,650,744 | 6,017,899 | 3,301,421 | 344,683 | – | 13,314,747 |
| Charge for the year | – | 793,640 | 116,544 | 163,227 | 101,150 | 405,767 | 1,580,328 |
| (Disposals) for the year | – | (4,444,384) | – | – | (240,000) | – | (4,684,384) |
| At 31 December 2023 | – | – | 6,134,443 | 3,464,648 | 205,833 | 405,767 | 10,210,691 |
| Carrying amount | |||||||
| At 31 December 2023 | – | – | 298,249 | 263,402 | 259,805 | 6,898,054 | 7,719,510 |
| At 31 December 2022 | 10,390,000 | 24,920,295 | 134,553 | 284,425 | 360,955 | 6,920,119 | 43,010,347 |
* The comprehensive IH Digital Transformation Program that commenced in 2019 was planned for 5 years till 2024 (from Conception to Go Live), aimed to enhance IH’s digital capabilities across motor, commercial, and medical lines of business.
The project encompasses the below key elements of digital assets apart from the upgrade or replacement of the core system which is currently in progress as per the revised project roadmap. The key digital components /capabilities which are part of the program are as follows:
- User Experience Design & Customer Journey Build
- Micro-Service based Target Technical Architecture & Infrastructure
- Digital Transformation Requirements, Process and RFP
- Comprehensive Test Pack including Methodology, Test Plan
- Online Solution for Business to Business, Business to Consumer, Insurance as a Service Components, and other Digital Fabric Layer
Transformation of Core Insurance (Replacement or Upgrade) which is currently in Progress. The above components/capabilities acquired and/or completed as part of this Project (Items 1- 5 above) are all re-usable in nature and currently form the base of the Transformation of Core Insurance, which is delayed, but still in progress. This project has been delayed due to Covid – 19, change in management team / key personnel and financial distractions of 2023. It is now being re-scheduled to be completed by 2025. The Company has capital work in progress of AED 6,898,053 (31 December 2022- AED 6,920,119) as at 31 December 2023 and management expects to capitalize it upon completion of the project. Based on internal assessment, management has initiated to amortize it effective 1 November 2023 over the period of 3 years. Management has considered the impact of amortization amounting to AED 405,768 (forming part of General and Administrative expenses) during the year.
