Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
31 December 2013
IFRS 12 Disclosure of Involvement with Other Entities
IFRS 12 sets out the requirements for disclosures relating to an entity’s interests in subsidiaries, joint arrangements, associates
and structured entities. It does not apply to certain employee benefit plans, separate financial statements to which IAS 27
Separate Financial Statements applies (except in relation to unconsolidated structured entities and investment entities in
some cases), certain interests in joint ventures held by an entity that does not share in joint control, and the majority of
interests in another entity accounted for in accordance with IFRS 9 Financial Instruments. IFRS 12 adds to the disclosure
requirements of IAS 1 by specifically requiring an entity to disclose all significant judgements and estimates made in
determining the nature of its interest in another entity or arrangement, and in determining the type of joint arrangement in
which it has an interest. Adoption of this standard did not have any impact on the consolidated financial statement of the
Group and the new disclosure are made in consolidated financial statement.
IFRS 13 Fair Value Measurement
IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements. The standard does not change
when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when
fair value is required or permitted. IFRS 13 requires an entity to disclose information that helps users of its financial
statements to assess both of the following: (a) For assets and liabilities that are measured at fair value on a recurring or
non-recurring basis in the statement of financial position after initial recognition, the valuation techniques and inputs used
to develop those measurements. (b) For fair value measurements using significant unobservable inputs, the effect of the
measurements on profit or loss or other comprehensive income for the period.
The application of IFRS 13 has not materially impacted the fair value measurements carried out by the Group. IFRS 13
also requires specific disclosures on fair values, some of which replace existing disclosure requirements in other standards,
including IFRS 7 Financial Instruments: Disclosures. Some of these disclosures are specifically required for non-financial
instruments, thereby affecting the disclosures of consolidated financial statements. The Group provides these disclosures
in Note 29.
Standard issue but not yet effective
Standards issued but not yet effective up to the date of issuance of the Group’s financial statements are listed below. This
listing of standards issued is those that the Group reasonably expects to have an impact on disclosures, financial position
or performance when applied at a future date. The Group intends to adopt these standards when they become effective.
IFRS 9 ‘Financial Instruments’:
The standard was issued in November 2009, however at the IASB meeting in July 2013, the IASB tentatively decided to
defer the mandatory effective date of IFRS 9 to be left open. However, IFRS 9 would still be available for early application.
The standard improves the ability of the users of the financial statement to assess the amount, timing and uncertainty
of future cash flows of the entity by replacing many financial instrument classification categories, measurement and
associated impairment methods. The application of IFRS 9 will result in amendments and additional disclosures relating to
financial instruments and associated risks.
IAS 32 Offsetting Financial Assets and Financial Liabilities — Amendments to IAS 32
These amendments clarify the meaning of “currently has a legally enforceable right to set-off”. The amendments also clarify
the application of the IAS 32 offsetting criteria to settlement systems (such as central clearing house systems) which apply
gross settlement mechanisms that are not simultaneous. This amendment is not expected to impact the Group’s financial
position or performance and becomes effective for annual periods beginning on or after 1 January 2014.
Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
These amendments are effective for annual periods beginning on or after 1 January 2014 provide an exception to the
consolidation requirement for entities that meet the definition of an investment entity under IFRS 10. The exception to
consolidation requires investment entities to account for subsidiaries at fair value through profit or loss. This amendment
would not be relevant to the Group, since the Group would not qualify to be an investment entity under IFRS 10.
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