Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
31 December 2013
3. CHANGES IN ACCOUNTING POLICIES
New and amended standards and interpretations
The accounting policies adopted are consistent with those of the previous financial year, except for the following new and
amended IFRS effective as of 1 January 2013:
The adoption of the standards or interpretations is described below:
IAS 1 Presentation of Items of Other Comprehensive Income – Amendments to IAS 1
The amendments to IAS 1 change the grouping of items presented in OCI. Items that could be reclassified (or ‘recycled’)
to profit or loss at a future point in time would be presented separately from items that will never be reclassified. The
amendment affects presentation only and therefore has no impact on the Group’s financial position or performance.
IFRS 7 Disclosures — Offsetting Financial Assets and Financial Liabilities - Amendments to IFRS 7
These amendments require an entity to disclose information about rights to set-off and related arrangements (e.g., collateral
agreements). The disclosures would provide users with information that is useful in evaluating the effect of netting
arrangements on an entity’s financial position. The new disclosures are required for all recognised financial instruments
that are set off in accordance with IAS 32 financial instruments: presentation. The disclosures also apply to recognised
financial instruments that are subject to an enforceable master netting arrangement or similar agreement, irrespective of
whether they are set off in accordance with IAS 32. The Group does not have any assets with these characteristics so there
has been no effect on the presentation of its consolidated financial statements.
IFRS 10 Consolidated Financial Statements
IFRS 10 establishes a single control model that applies to all entities including special purpose entities. IFRS 10 replaces the
parts of previously existing IAS 27 Consolidated and Separate Financial Statements that dealt with consolidated financial
statements and SIC-12 Consolidation – Special Purpose Entities. IFRS 10 changes the definition of control such that an
investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over the investee. To meet the definition of control in IFRS
10, all three criteria must be met, including: (a) an investor has power over an investee; (b) the investor has exposure, or
rights, to variable returns from its involvement with the investee; and (c) the investor has the ability to use its power over
the investee to affect the amount of the investor’s returns. The adoption of this standard did not have any material impact
on the consolidated financial position or performance of the Group.
IFRS 11 Joint Arrangements and IAS 28 Investment in Associates and Joint Ventures
IFRS 11 replaces IAS 31 Interests in Joint Ventures and SIC-13 Jointly-controlled Entities — Non-monetary Contributions by
Venturers. IFRS 11 removes the option to account for jointly controlled entities (JCEs) using proportionate consolidation.
Instead, JCEs that meet the definition of a joint venture under IFRS 11 must be accounted for using the equity method. This
amendment does not have any impact on the consolidated financial statement.
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