Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
31 December 2013
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Parent Company and its subsidiary as at 31
December 2013. Control is achieved when the Group 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. Specifically, the Group
controls an investee if and only if the Group has:
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)
• Exposure, or rights, to variable returns from its involvement with the investee, and
• The ability to use its power over the investee to affect its returns
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts
and circumstances in assessing whether it has power over an investee, including:
• The contractual arrangement with the other vote holders of the investee
• Rights arising from other contractual arrangements
• The Parent Company’s voting rights and potential voting rights
The financial statements of the Subsidiary are prepared at the same reporting year as the Parent Company using consistent
accounting policies. Subsidiaries are consolidated from the date on which the Group obtains control and continues to be
consolidated until the date that such control ceases.
All material intra-group balances and transactions, including material unrealised gains and losses arising on intra-group
transactions are eliminated on consolidation.
Non-controlling interest represents the portion of profit and loss and net assets not held by the Group and are presented
separately in the consolidated statement of income and within equity in the consolidated statement of financial position
separately from equity attributable to the equity holders of the Parent Company.
A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction.
Losses are attributed to the non controlling interest even if that results in a deficit balance. If the Group loses control over
a subsidiary, it:
• Derecognises the assets (including goodwill) and liabilities of the subsidiary;
• Derecognises the carrying amount of any non controlling interest;
• Derecognises the cumulative translation differences, recorded in equity;
• Recognises the fair value of the consideration received;
• Recognises the fair value of any investment retained;
• Recognises any surplus or deficit in consolidated statement of income; and
• Reclassifies the Parent Company’s share of components previously recognised in other comprehensive income to
consolidated statement of income or retained earnings as appropriate.
The consolidated financial statements include the financial statements of the Parent Company and the following subsidiaries,
where the Parent Company has direct investment :
26
11
45
