Dubai – Mubasher: The accumulated losses of Deyaar Development have reached AED 1.528 billion, representing 26.46% of the capital, by the end of the first quarter (Q1) of 2020.
The accumulated losses are driven by the provisions for the impairment of assets due to the real estate market situation in Dubai in 2010, according to the company's disclosure to Dubai Financial Market (DFM) on Sunday.
Moreover, the company applied the International Financial Reporting Standard 9 (IFRS 9), which resulted in provisions for certain assets at a total value of AED 661 million, registered in the opening balance of accumulated losses as of 1 January 2018.
To address the accumulated losses, the company has worked on completing all the existing projects and implementing new projects, which were sold at high values, as well as strengthening the company's portfolio of assets.
During the ordinary general meeting (OGM), held on 8 April 2020, shareholders approved reducing capital to write off accumulated losses.