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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)

r) Other reserve:
Other reserve is used to record the effect of changes in ownership interest in subsidiaries, without loss of control.

s) Share-based payment transaction:
The Group operates an equity-based payment plan to its employees. Under the terms of the plan, shares are
granted to permanent employees. The cost of equity-settled transactions with employees is measured by reference
to the fair value at the date on which they are granted. The fair value of the shares is measured based on market
prices available taking into account the terms and conditions upon which those shares were granted.

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance and / or service conditions are fulfilled, ending on the date on which the relevant
employees become fully entitled to the award (‘the vesting date’). The cumulative expense recognised for equity-
settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has
expired and the Group’s best estimate of the number of equity instruments that will ultimately vest.

t) Revenue from contracts with customers:
Revenue from contracts with customers is recognized when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for
those goods or services. The Group has generally concluded that it is the principal in its revenue arrangements,
because it typically controls the goods or services before transferring them to the customer.

The Group applies a five-step model are as follows to account for revenue arising from contracts:
- Step 1: Identify the contract with the customer – A contract is defined as an agreement between two or more
parties that creates enforceable rights and obligations and sets out the criteria for every contract that must be
met.
- Step 2: Identify the performance obligations in the contract – A performance obligation is a promise in a
contract with the customer to transfer goods or services to the customer.
- Step 3: Determine the transaction price – The transaction price is the amount of consideration to which the
Group expects to be entitled in exchange of transferring promised good or services to a customer, excluding
amounts collected on behalf of third parties.
- Step 4: Allocate the transaction price to the performance obligations in the contracts – For a contract that has
more than one performance obligation, the Group will allocate the transaction price to each performance
obligation in an amount that depicts the amount of consideration to which the Group expects to be entitled in
exchange for satisfying each performance obligation.
- Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

The Group exercises judgement, taking into consideration all of the relevant facts and circumstances when
applying each step of the model to contracts with their customers.

The Group recognizes revenue either at a point in time or over time, when (or as) the Group satisfies performance
obligations by transferring the promised goods or services to its customers. The Group transfers control of a good
or service over time (rather than at a point in time) when any of the following criteria are met:
• The customer simultaneously receives and consumes the benefits provided by the entity’s performance as
the entity performs.
• The Group’s performance creates or enhances an asset (e.g., work in process) that the customer controls as
the asset is created or enhanced.
• The Group’s performance does not create an asset with an alternative use to the entity and the entity has an
enforceable right to payment for performance completed to date.

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