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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)

Measurement categories of financial assets
The Group classifies its financial assets upon initial recognition into the following categories:
• Debt instruments at amortized cost.
• Debt instruments at fair value through other comprehensive income (FVTOCI), with gains or
losses recycled to statement of profit or loss on derecognition.
• Equity instruments at FVTOCI, with no recycling of gains or losses to statement of profit or loss
on derecognition.
• Financial assets at fair value through profit or loss FVTPL.

Debt instruments at amortized cost
A financial asset is measured at amortized cost if it meets both of the following conditions:
- The asset is held within a business model whose objective is to hold assets to collect
contractual cash flows; and
- The contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest (SPPI) on the principal amount outstanding.

Debt instruments measured at amortized cost are subsequently measured at amortized cost using
the effective yield method adjusted for impairment losses if any. Gain and losses are recognized in
consolidated statement of profit and loss when the asset is derecognized, modified or impaired.

Amortized cost and effective interest method
The effective interest method is a method of calculating the amortized cost of a debt instrument and
of allocating interest income over the relevant period.

The amortized cost of a financial asset is the amount at which the financial asset is measured at
initial recognition minus the principal repayments, plus the cumulative amortization using the
effective interest method of any difference between that initial amount and the maturity amount,
adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortized
cost of a financial asset before adjusting for any loss allowance.

Cash and cash equivalents, and trade receivables are classified as debt instruments at amortized
cost.

- Cash and cash equivalents
Cash and cash equivalents includes cash in hand and at banks, deposits held at call with banks
and other short-term highly liquid investments with original maturities of three months or less
that are readily convertible to a known amount of cash and are subject to an insignificant risk
of changes in value.

- Trade receivables
Receivables are amounts due from customers and tenants for units sold or rent or services
performed in the ordinary course of business and is recognized initially at fair value and are
subsequently measured at amortized cost using the effective interest method, less allowance
for expected credit losses.

Equity instruments at FVTOCI
Upon initial recognition, the Group may elect to classify irrevocably some of its equity instruments
at FVTOCI when they are neither held for trading nor a contingent consideration arising from a
business combination. Such classification is determined on an instrument-by- instrument basis.

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