Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
31 December 2013
The difference in reporting dates of the associates and the Group is not more than three months. Adjustments are made
for the effects of significant transactions or events that occur between that date and the date of the Group’s consolidated
financial statements. The associate’s accounting policies conform to those used by the Group for like transactions and
events in similar circumstances.
Upon loss of significant influence over the associate, the Group measures and recognises any retaining investment at its fair
value. Any differences between the carrying amount of the associate upon loss of significant influence and the fair value of
the remaining investment and proceeds from disposal are recognised in the consolidated statement of income.
Investment properties
Investment properties comprises developed property and property under construction or re-development held to earn
rentals or for capital appreciation or both. Property held under a lease is classified as investment property when the
definition of an investment property is met.
Investment property is measured initially at cost including transaction costs. Transaction costs include transfer taxes,
professional fees for legal services and initial leasing commissions to bring the property to the condition necessary for it to
be capable of operating. The carrying amount also includes the cost of replacing part of an existing investment property at
the time that cost is incurred if the recognition criteria are met.
Subsequent to initial recognition, investment property is stated at fair value. Gains or losses arising from changes in the fair
values are included in the consolidated statement of income in the year in which they arise.
Investment property is derecognised when it has been disposed of or permanently withdrawn from use and no future
economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of investment property are
recognised in the consolidated statement of income in the year of retirement or disposal.
Gains or losses on the disposal of investment property are determined as the difference between net disposal proceeds and
the carrying value of the asset in the previous full period consolidated financial statements.
Transfers are made to investment property when, and only when, there is a change in use, evidenced by the end of owner
occupation or commencement of an operating lease. Transfers are made from investment property when, and only when,
there is a change in use, evidenced by commencement of owner occupation or commencement of development with a
view to sale.
Property and equipment
Property and equipment are stated at cost less accumulated depreciation and any impairment in value.
Depreciation is calculated on a straight line basis over the estimated useful lives of assets as follows:
Computer hardware and software
3 years
Furniture and fixtures
5 years
Motor vehicles
5 years
The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances
indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the
estimated recoverable amount, the assets are written down to their recoverable amount.
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