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 127 (All amounts are in Kuwaiti Dinars) ANNUAL REPORT 2019 30. Fair value measurement The Group measures financial assets such as financial assets at FVPL and financial assets at FVOCI and non–financial assets such as investment properties at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability, or • In the absence of a principal market, in the most advantageous market for the asset or liability All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities. Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. The following table shows an analysis of captions recorded at fair value by level of the fair value hierarchy: During the year, certain unquoted financial assets previously measured under level 3 were transferred to level 1 due to the listing of those shares during the year in Boursa Kuwait, which resulted in transferring and measuring those financial assets under level 1 as of December 31, 2019. The fair value details of investment properties are mentioned in Note 9. For assets and liabilities that are recognized in the consolidated financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization based on the lowest level input that is significant to the fair value measurement as a whole at the end of each reporting period. 2019 2018 Level 1 Level 1 Level 3 Level 3 Total Total Financial assets at FVPL Financial assets at FVOCI Total Financial assets at FVPL Financial assets at FVOCI Total 48,147 - 48,147 - - - 777,853 3,115,718 3,893,571 981,739 4,679,356 5,661,095 826,000 3,115,718 3,941,718 981,739 4,679,356 5,661,095