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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 Group recognizes in its consolidated statement of profit or loss for its share of results of operations of the
associate and in its other comprehensive income for its share of changes in other comprehensive income of
associate.

Losses of an associate in excess of the Group’s interest in that associate (which includes any long-term interests
that, in substance, form part of the Group’s net investment in the associate) are not recognized except to the extent
that the Group has an obligation or has made payments on behalf of the associate.

Gains or losses arising from transactions with associates are eliminated against the investment in the associate to
the extent of the Group’s interest in the associate.

Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets, liabilities
and contingent liabilities of the associate recognized at the date of acquisition is recognized as goodwill. The
goodwill is included within the carrying amount of the investment in associates and is assessed for impairment as
part of the investment. If the cost of acquisition is lower than the Group’s share of the net fair value of the identifiable
assets, liabilities and contingent liabilities, the difference is recognized immediately in consolidated statement of
profit or loss.

The Group determines at each reporting date whether there is any objective evidence that the investment in
associate is impaired and determine if necessary, to recognize any impairment loss with respect to the investment.
If there is such evidence, the entire carrying amount of the investment (including goodwill) is tested for impairment
and the Group calculates the amount of impairment as the difference between the recoverable amount of the
associate and its carrying value and recognizes the amount in consolidated statement of profit or loss. Any reversal
of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently
increases.

Upon loss of significant influence over the associate, the Group measures and recognizes any retaining investment
at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and
the fair value of the retaining investment and proceeds from disposal is recognized in consolidated statement of
profit or loss.

i) Joint Arrangements:
The Group classifies its interests in joint arrangements as joint ventures depending on the Group’s right to the
assets and obligations for the liabilities of the arrangements.

a) Joint Ventures
A joint venture is a joint arrangement, whereby the parties that have joint control of the arrangement have rights
to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the relevant activities require unanimous consent of the
parties sharing control.

Investment in Joint Ventures is accounted based on equity method similar to associates.

b) Joint Operations
A joint operation is a joint arrangement, whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require unanimous consent of the parties sharing control.

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