Notes to The Consolidated Financial Statements
AL MAZAYA HOLDING K.S.C. (HOLDING) AND ITS SUBSIDIARIES
For the year ended 31 December 2011
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1. FORMATION AND PRINCIPAL ACTIVITIES
Al Mazaya Holding Company - K.S.C. (Holding) was incorporated on 7 November 1998 under the Commercial Companies
Law No. 15 of 1960 and amendments thereto.
The Parent Company is engaged in investment in local and foreign companies, real estate properties and consultancy
services. The registered Head Office of the Parent Company is at Salhiya complex, Fahed Al Salem Street, P.O. Box 3546,
Safat 13036, Kuwait.
The consolidated financial statements were approved for issue by the Board of Directors on 28 March 2012. The
shareholders’ General Assembly has the power to amend these consolidated financial statements after issuance.
2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS
Standards, Interpretations and amendments effective in the current year
The accounting policies used in the preparation of these consolidated financial statements are consistent with those used
in the prior year except for the adoption of the new standards and amendments adopted in the current year. During the
current year, the Group has applied all of the new and revised standards, interpretations and amendments issued by the
International Accounting Standards Board (“IASB”) and the International Financial Reporting Interpretations Committee
(“IFRIC”) of the IASB that are relevant to its operations and effective for accounting periods beginning on or after 1 January
2011. Significant amendments relevant to the Group are described as follows:
Amendments to IAS 1 Presentation of Financial Statements
The amendments to IAS 1 clarify that an entity may choose to disclose an analysis of other comprehensive income
by item in the statement of changes in equity or in the notes to the financial statements. In the current year, for each
component of equity, the Group has chosen to continue the presentation of such an analysis in the consolidated statement
of comprehensive income.
IAS 24 Related Party Disclosures (as revised in 2009)
IAS 24 (as revised in 2009) has been revised on the following two aspects: (a) IAS 24 (as revised in 2009) has changed
the definition of a related party and (b) IAS 24 (as revised in 2009) introduces a partial exemption from the disclosure
requirements for government-related entities.
The Parent Company and its subsidiaries are not government-related entities. The application of the revised definition
of related party set out in IAS 24 (as revised in 2009) in the current year did not have material impact on the financial
statements.
Amendments to IFRS 3 Business Combinations
As part of Improvements to IFRSs issued in 2010, IFRS 3 was amended to clarify that the measurement choice regarding
non-controlling interests at the date of acquisition is only available in respect of non-controlling interests that are present
ownership interests and that entitle their holders to a proportionate share of the entity's net assets in the event of liquidation.
All other types of non-controlling interests are measured at their acquisition-date fair value, unless another measurement
basis is required by other Standards. In addition, IFRS 3 was amended to provide more guidance regarding the accounting
for share-based payment awards held by the acquiree's employees.
The application of amendments to IFRS 3 has had no material effect on the presentation and disclosures in the financial
statements of the Group for the current year and prior years but may affect the accounting for future transactions or
arrangements.
