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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)

y) Zakat:
Zakat is calculated at 1% of the profit attributable to the shareholders of the Parent before contribution to KFAS,
NLST, Zakat, and Board of Directors’ remuneration, and after deducting the Company’s share of profit from Kuwaiti
shareholding associates and subsidiaries, share of Zakat paid by Kuwaiti shareholding subsidiaries and cash
dividends received from Kuwaiti shareholding companies in accordance with Law No. 46 of 2006 and Ministerial
resolution No. 58 of 2007 and their Executive Regulations. No Zakat has been provided since there was no financial
profit on which Zakat could be calculated for the year ended December 31, 2023.

z) Foreign currencies:
Foreign currency transactions are translated into Kuwaiti Dinars at rates of exchange prevailing on the date of the
transactions. Monetary assets and liabilities denominated in foreign currency as at the end of reporting year are
retranslated into Kuwaiti Dinars at rates of exchange prevailing on that date. Non-monetary items carried at fair
value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair
value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are
not retranslated.

Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are
included in consolidated statement of profit or loss for the period. Translation differences on non-monetary items
such as equity instruments which are classified as financial assets at FVTPL are reported as part of the fair value
gain or loss. Translation differences on non-monetary items such as equity instruments classified as FVTOCI are
included in “cumulative changes in fair value” in other comprehensive income.

The assets and liabilities of the foreign subsidiary are translated into Kuwaiti Dinars at rates of exchange prevailing
at the end of reporting period. The results of the subsidiary are translated into Kuwaiti Dinars at rates approximating
the exchange rates prevailing at the dates of the transactions. Foreign exchange differences arising on translation
are recognized directly in other comprehensive income. Such translation differences are recognized in the
consolidated statement of profit or loss in the period in which the foreign operation is disposed off.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities
of the foreign entity and translated at the closing rate.

aa) Contingencies:
Contingent liabilities are not recognized in the consolidated financial statements unless it is probable as a result of
past events that an outflow of economic resources will be required to settle a present, legal or constructive
obligation; and the amount can be reliably estimated. Else, they are disclosed unless the possibility of an outflow
of resources embodying economic losses is remote.

Contingent assets are not recognized in the consolidated financial statements but disclosed when an inflow of
economic benefits as a result of past events is probable.

ab) Segment reporting:
A segment is a distinguishable component of the Group that engages in business activities from which it earns
revenue and incurs costs. Operating segments are reported in a manner consistent with the internal reporting
provided to the chief operating decision-maker. The chief operating decision-maker is identified as the person
being responsible for allocating resources, assessing performance and making strategic decisions regarding the
operating segments.

ac) Dividend distribution to shareholders:
The Group recognizes a liability to make cash and non-cash distributions to shareholders of the Parent Company
when the distribution is authorized and the distribution is no longer at the discretion of the Group. A distribution is
authorized when it is approved by the shareholders of the Parent company at the Annual General Meeting. A
corresponding amount is recognized directly in equity.

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