Dubai-based Deyaar to devalue $177.5mln land plots

Dubai: Deyaar Development has reduced the book value of AED 652 million ($177.5mln) plots of land in the first quarter of 2018 pursuant to IFRS 9 standard, which has been applied since 1 January 2018.

IFRS 9 requires banks to provide for loans and investments, not measured at fair value, based on the expectation of a credit loss instead of the loss being incurred.

The reduction of those plots’ value increased the company’s accumulated loss to AED 1.677 billion in the first three months of 2018, which dragged down equity to AED 4.378 billion in the same period versus AED 4999 billion at the end of 2017.

The Dubai-based developer’s net profit surged 25% to AED 40 million ($10.89 million).