Notes to The Consolidated Financial Statements
AL MAZAYA HOLDING K.S.C. (HOLDING) AND ITS SUBSIDIARIES
For the year ended 31 December 2011
The measurement period is the period from the date of acquisition to the date the Group receives complete information
about facts and circumstances that existed as of the acquisition date and is subject to a maximum of one year.
Where a business combination is achieved in stages, the Group’s previously-held interests in the acquired entity are
remeasured to fair value at the acquisition date (i.e. the date the Group attains control) and the resulting gain or loss, if
any, is recognised in the consolidated statement of income. Amounts arising from interests in the acquiree prior to the
acquisition date that have previously been recognised in equity are reclassified to the consolidated statement of income,
where such treatment would be appropriate if that interest is disposed off.
Goodwill
Goodwill arising on the acquisition of a subsidiary is recognised as an asset at the date that control is acquired (the
acquisition date). Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-
controlling interest in the acquiree and the fair value of the acquirer’s previously-held equity interest (if any) in the entity
over the net fair value of the identifiable net assets recognised.
If, after reassessment, the Group’s interest in the net fair value of the acquiree’s identifiable net assets exceeds the sum of
the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the acquirer’s
previously-held equity interest (if any), the excess is recognised immediately in the consolidated statement of income as a
bargain purchase gain.
Goodwill is not amortised, but is reviewed for impairment at least annually. Goodwill impairment is determined by
assessing the recoverable amount of cash-generating unit to which goodwill relates. The recoverable value is the value
in use of the cash-generating unit, which is the net present value of estimated future cash flows expected from such
cash-generating unit. If the recoverable amount of cash generating unit is less than the carrying amount of the unit, the
impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other
assets of the unit prorated on the basis of the carrying amount of each asset in the unit.
Any impairment loss recognised for goodwill is not reversed in a subsequent period. On disposal of a subsidiary, the
attributable amount of goodwill is included in the determination of the profit or loss on disposal.
Financial instruments
Financial assets are recognised on the Group’s consolidated statement of financial position when the Group becomes a
party to the contractual provisions of the instrument. Financial assets are classified as ‘cash and bank balances’, ‘trade and
other receivables’and ‘available for sale investments’.
Classification
In accordance with International Accounting Standard (IAS) 39, the Company classifies its financial instruments as
“investments available for sale” , “loans and receivables”, and “financial liabilities other than at fair value through profit
or loss”.
Recognition and de-recognitoin
The Company recognizes financial assets and financial liabilities on the date it becomes a party to the contractual provisions
of the instruments. A financial asset (in whole or in part) is de-recognised when the contractual right to receive cash flows
from the financial asset has expired or the Company has transferred substantially all the risks and rewards of ownership and
has not retained control. If the Company has retained control, it continues to recognise the financial asset to the extent of
its continuing involvement in the financial asset. A financial liability is derecognized when the obligation specified in the
contract is discharged, cancelled or expired.
Regular way purchase and sale of financial assets are recognized using trade date accounting. Regular way purchases or
sales are purchases or sales of financial assets that require delivery of assets within the time frame generally established by
regulations or conventions in the market place.
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