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AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC)
AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2023
(All amounts are in Kuwaiti Dinars)

The IASB also specifies that the right to defer settlement of a liability for at least twelve months after the reporting
date is not affected if an entity only has to comply with a covenant after the reporting period. However, if the entity’s
right to defer settlement of a liability is subject to the entity complying with covenants within twelve months after
the reporting period, an entity discloses information that enables users of financial statements to understand the
risk of the liabilities becoming repayable within twelve months after the reporting period. This would include
information about the covenants (including the nature of the covenants and when the entity is required to comply
with them), the carrying amount of related liabilities and facts and circumstances, if any, that indicate that the entity
may have difficulties complying with the covenants.

The amendments are applied retrospectively for annual reporting periods beginning on or after January 1, 2024.
Earlier application of the amendments is permitted. If an entity applies the amendments for an earlier period, it is
also required to apply the amendments to IAS 1 – “Classification of Liabilities as Current or Non-current” early.
These amendments are not expected to have a material impact on the consolidated financial statements.

Amendments to IAS 1 – Classification of Liabilities as Current or Non-current
In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for
classifying liabilities as current or non-current. The amendments clarify:
• What is meant by a right to defer settlement.
• That a right to defer must exist at the end of the reporting period.
• That classification is unaffected by the likelihood that an entity will exercise its deferral right.
• That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a
liability not impact its classification.

The amendments are effective for annual reporting periods beginning on or after 1 January 2024 and must be
applied retrospectively. The Group is currently assessing the impact the amendments will have on current practice.
These amendments are not expected to have a material impact on the consolidated financial statements.

Lack of Exchangeability (Amendments to IAS 21)
The amendments contain guidance to specify when a currency is exchangeable and how to determine the
exchange rate when it is not.
The amendments are effective for annual reporting periods beginning on or after January 1, 2025. Earlier
application is permitted.

An entity is required to recognize any effect of initially applying the amendments as an adjustment to the opening
balance of retained earnings when the entity reports foreign currency transactions. When an entity uses a
presentation currency other than its functional currency, it recognizes the cumulative amount of translation
differences in equity. These amendments are not expected to have a material impact on the consolidated financial
statements.

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