Annual report eng.2019

N otes To The Consolidated Financial Statements AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES As At 31 December 2019 (All amounts are in Kuwaiti Dinars) OF ACHIEVEMENTS 10. Goodwill Goodwill represents excess of consideration paid for acquisition of First Dubai Real Estate Development Company K.S.C.P. shares over and above the fair value of the identifiable assets and liabilities. The management assessed the carrying value of goodwill for impairment and did not notice any indication for impairment loss as at December 31, 2019. 11. Acquisition of a subsidiary On July 1, 2019 the Group increased its share in Al Mazaya Prime for Projects development Company – W.L.L. by 19% to be 99%. The Group has control over the financial and operating policies of the Company accordingly, the Group has reclassified its investment in that Company that was previously under joint control from an investment in joint venture to investment in subsidiary. The following table summarizes the acquisition cost of the Company as well as the assets and liabilities acquired at the date of acquisition as at July 1, 2019: The acquisition did not result in any goodwill as the acquisition consideration is equal to the fair value of the acquired shares of the company's net assets in accordance with the contractual agreements between the parties. The fair value of the acquired company which has been used to calculate the acquired share in the company as well as the fair value of the Parent Company's investment in the subsidiary before the acquisition date has been estimated based on the carrying amount of the investment from the Company’s financial statements as at July 1, 2019, as all assets of the subsidiary are stated at their fair value. Consideration for the new shares Fair value of shares held by the Group prior to the acquisition Total Acquired assets and liabilities: Cash at bank Accounts receivable and other debit balances Investment property (Note 9) Lease liability (Note 13) Accounts payable and other credit balances Net assets value 444,704 1,778,816 2,223,520 19,760 450,917 8,732,519 )6,117,859( )861,817( 2,223,520 Amount