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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)

Recoverable amount is the higher of the fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,
the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss
is recognized immediately in the consolidated statement of profit or loss, unless the relevant asset is carried at a
revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognized for the
asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in the
consolidated statement of profit or loss, unless the relevant asset is carried at a revalued amount, in which case
the reversal of the impairment loss is treated as a revaluation increase.

n) End of service indemnity:
Provision is made for amounts payable to employees under the Kuwaiti Labor Law in the private sector, employees'
contracts and the applicable labor laws in the countries where the subsidiaries operate. This liability, which is
unfunded, represents the amount payable to each employee as a result of involuntary termination at the end of the
reporting period, and approximates the present value of the final obligation.

o) Share capital:
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are
shown in equity as a deduction from the proceeds.

p) Share premium:
This represents cash received in excess of the par value of the shares issued. The share premium is not available
for distribution except in cases stipulated by law.

q) Treasury shares:
Treasury shares consist of the Parent Company’s own shares that have been issued, subsequently reacquired by
the Group and not yet reissued or cancelled. The treasury shares are accounted for using the cost method. Under
the cost method, the weighted average cost of the shares reacquired is charged to a contra equity account. When
the treasury shares are reissued, gains are credited to a separate account in shareholders’ equity (treasury shares
reserve) which is not distributable. Any realized losses are charged to the same account to the extent of the credit
balance on that account. Any excess losses are charged to retained earnings, reserves, and then share premium
respectively.

Gains realized subsequently on the sale of treasury shares are first used to offset any recorded losses in the order
of share premium, reserves, retained earnings and the treasury shares reserve account. No cash dividends are
paid on these shares. The issue of bonus shares increases the number of treasury shares proportionately and
reduces the average cost per share without affecting the total cost of treasury shares.

Where any Group's company purchases the Parent Company’s equity share capital (treasury shares), the
consideration paid, including any directly attributable incremental costs is deducted from equity attributable to the
Parent Company’s equity holders until the shares are cancelled or reissued. Where such shares are subsequently
reissued, any consideration received, net of any directly attributable incremental transaction costs, is included in
equity attributable to the Parent Company’s shareholders.

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