Finance House P.J.S.C.

Notes to the condensed consolidated interim financial information (continued) For the three-month period ended 31 March 2023

21 Legal proceedings

The Group is involved in various legal proceedings and claims arising in the ordinary course of business. While the outcome of these matters cannot be predicted with certainty, management does not believe that these matters will have a material adverse effect on the Group’s condensed consolidated interim financial information if disposed unfavorably.

22 Restatement

During the current period, Management has identified errors in the accounting of transactions related to the reinsurance business of medical and personal assurance for prior periods. Management is in the process of appointing an independent consultant to investigate this error along with the quantitative impact. However, Management has carried out internal assessment and provisionally assessed the impact and accounted for reversal of receivable from reinsurance contract amounting to AED 69,343 thousands as at 31 December 2022 with corresponding impact to accumulated losses.

In accordance with the requirements of ‘IAS 1 Presentation of Financial Statements” and ‘IAS 8 Accounting policies, Changes in Accounting Estimates and Errors’, the prior period errors has been corrected retrospectively by restating the relevant comparative balances in the financial statements. Refer table below for details of restatement.