Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
31 December 2013
Sensitivity analysis
The tale below presents the sensitivity of the valuation to changes by 5% in the most significant assumptions underlying
the valuation of the investment property.
40
7,605,552
81,489,319
89,094,871
6,901,421
67,572,725
74,474,146
Land
Developed property held for earning rental income
2013
KD
2012
KD
+/-5%
+/-5%
380,278
4,074,466
345,071
3,378,636
Land
Developed property held for earning rental income
Changes in the
valuation assumption
Impact on profit for
the year 2013
KD
Impact on profit for
the year 2012
KD
Certain investment properties with a carrying value of KD 19,080,400 (31 December 2012: KD 14,283,688) are
collateralised against term loans amounting to KD 23,500,000 (31 December 2012: KD 38,000,000) (note 18).
(i) Additions includes the purchase of an investment property amounting to KD 9,800,000 from related party. For detail
of transaction refer note 25.
(ii) Valuations of investment properties were conducted by two independent appraisers with a recognised and relevant
professional qualification and recent experience of the location and category of investment properties being valued. The
change in fair value was calculated based on the lower of the two values. Fair value of the investment properties is arrived
at by reference to industry acknowledged methods of valuations that depend on market data including recent sales value
of comparable properties. Further details are provided in note 29.
Investment properties mainly comprise of the following;
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