Page 31 - Q4-2024-EN

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)

Control is transferred at a point in time if none of the criteria for a good or service to be transferred over time are
met. The Group considers the following factors in determining whether control of an asset has been transferred:
• The Group has a present right to payment for the asset.
• The customer has legal title to the asset.
• The Group has transferred physical possession of the asset.
• The customer has the significant risks and rewards of ownership of the asset.
• The customer has accepted the asset.

Incremental costs of obtaining a contract with a customer are capitalized when incurred as the Group expects to
recover these costs and such costs would not have incurred if the contract has not been obtained. Sales
commission incurred by the Group is expensed as the amortization period of such costs is less than a year.

Revenue for the Group arises from the following activities:

Sale of properties held for trading
Revenue is recognized when control over the property has been transferred to the customer either at a point in
time or over time. The properties have generally no alternative use for the Group due to contractual restrictions,
and control is deemed to be transferred to the customer during the development period when the Group had an
enforceable right to payment for performance completed to date. Therefore, revenue is recognized and measured
at the transaction price agreed under the contract according to the performance completed.

Rent
Rental income is recognized, when earned, on a time apportionment basis.

Medical services
Medical services income is recognized when earned as the service is rendered.

Management fees
Management fees income is recognized, when earned, on a time apportionment basis.

Other income
Other income are recognized on an accrual basis.

u) Provisions:
A provision is recognized when the Group has a present legal or constructive obligation as a result of a past event
and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation,
and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each
reporting period and adjusted to reflect the current best estimate. Where the effect of the time value of money is
material, the amount of a provision is the present value of the expenditures expected to be required to settle the
obligation.

Contingent liabilities recognised in a business combination
Contingent liabilities acquired in a business combination are initially measured at fair value at the acquisition date.
At the end of subsequent reporting periods, such contingent liabilities are measured at the higher of the amount
that would be recognized in accordance with IAS 37 and the amount recognized initially less cumulative amount
of income recognized in accordance with the principles of IFRS 15.

Onerous contracts
An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Group cannot avoid
because it has the contract) of meeting the obligations under the contract exceed the economic benefits expected
to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract,
which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it.

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