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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)

Non-cash distributions are measured at the fair value of the assets to be distributed with fair value re-measurement
recognized directly in equity. Upon distribution of non-cash assets, any difference between the carrying amount of
the liability and the carrying amount of the assets distributed is recognized in the consolidated statement of profit
or loss.

Distributions for the year that are approved after the reporting date are disclosed as an event after the date of
consolidated statement of financial position.

ad) Fiduciary assets
Assets held in trust or in a fiduciary capacity are not treated as assets of the Group and accordingly are not included
in these consolidated financial statements but are disclosed in the notes to the consolidated financial statements.

ae) Critical accounting estimates and judgments:
The Group makes judgments, estimates and assumptions concerning the future. The preparation of consolidated
financial statements in conformity with International Financial Reporting Standards requires management to make
judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of
revenue and expenses during the year. Actual results could differ from the estimates.

a) Judgments
In the process of applying the Group’s accounting policies which are described in Note 2, management has
made the following judgments that have the most significant effect on the amounts recognized in the
consolidated financial statements.

- Revenue Recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Group and
the revenue can be reliably measured. The determination of whether the revenue recognition criteria as
specified under IFRS 15 and revenue accounting policy explained in Note (2 - r) are met requires
significant judgment.

- Determination of contract cost
Determination of costs which are directly related to the specific contract or attributable to the contract
activity in general requires significant judgment. The determination of contract cost has a significant
impact upon revenue recognition in respect of long term contracts. The Group follows guidance of IFRS
15 for determination of contract cost and revenue recognition.

- Classification of Land
Upon acquisition of land, the Group classifies the land into one of the following categories, based on the
intention of the management for the use of the land:

a) Properties under development
When the intention of the Group is to develop land in order to sell it in the future, both the land and
the construction costs are classified as properties under development within properties held for
trading.

b) Work in progress
When the intention of the Group is to develop a land in order to rent or to occupy it in the future, both
the land and the construction costs are classified as work in progress within investment properties or
property, plant and equipment respectively.

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