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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)

The results of operation related to the subsidiary that had been reclassified are as follows:

2023 2022
Revenue:
Rental income 564,728 749,500
Net management fees and commission income 31,560 41,098
Total revenue 596,288 790,598
Cost:
Rental cost (163,627) (162,839)
Total cost (163,627) (162,839)

Gross profit 432,661 627,759

Change in fair value of investment properties (350,797) (428,306)
General and administrative expenses (21,099) (28,465)
Operating profit 60,765 170,988
Net other income (expenses) 101,408 (188,152)
Profit (loss) for the period / year 162,173 (17,164)

a) Discontinued operations
During the year ended December 31, 2023, the Parent Company received an offer to purchase its full ownership
interest in its subsidiary in Turkey “Mazaya Ritim Istanbul Insaat Anonim Sirketi” for Turkish Lira 310 Million,
equivalent to almost KD 4.89 Million as at April 13, 2023, (date of disposal) including the settlement of current
accounts between the Parent Company and disposed subsidiary. The Parent Company accepted that offer and
sold all ownership interests in that subsidiary in Republic of Turkey against the same consideration provided in the
purchase offer.

This transaction was recorded by the Group during the year ended December 31, 2023 based on the subsidiary’s
financial position as at April 13, 2023 (date of sale transaction completion).

The accumulated losses include a credit amount of KD 579,638 (2022 - KD 2,469,533) that represents the
calculation of the cumulative hyperinflation impact resulting from historical translation differences for the activities
and operations of the subsidiary from the beginning of the year the sale transaction completion date in accordance
with IAS 29 “Financial Reporting in Hyperinflationary Economies”. The net monetary gain for the Group that was
recognized in the consolidated statement of profit or loss till the sale transaction completion date had amounted
to KD 75,048 (2022 - KD 216,705), which had resulted from the assessment of the Turkish economy as a
hyperinflationary economy based on the cumulative inflation rates over the previous three years that was effective
for reporting periods on or after April 1, 2022, where the Group had decided to classify the historical translation
differences associated with the hyperinflation to accumulated losses.

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