Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C. AND ITS SUBSIDIARIES
31 December 2012
1. CORPORATE INFORMATION
Al Mazaya Holding Company - K.S.C. (the “Parent Company”) was incorporated on 7 November 1998 under the Companies
Law No. 25, of 2012 and is listed on the Kuwait Stock Exchange and Dubai Financial Market. The address of the Parent
Company’s registered office is at Salhiya Complex, Fahed Al Salem Street, P.O. Box 3546, Safat 13036, State of Kuwait.
The principal activities of the Parent Company as per the article of association are as follows:
Ownership of Kuwaiti and foreign shareholding companies, ownership of shares and portions of limited liability Kuwaiti
and foreign companies or participating in the formation of those companies, as well as managing and guaranteeing those
companies, granting loans to the companies in which it owns shares in and guaranteeing them towards others, provided
that the percentage of participation of the holding company in the capital of the borrowing company is not less than 20%,
ownership of industrial property rights including intellectual rights, trade marks, industrial marks, industrial fees or any
other rights relating to such assets and leasing them to other companies to utilize them whether inside or outside the state
of Kuwait, ownership of the movable assets and real properties needed to operate within the applicable laws, utilization
of its available financial surpluses by investing them in financial real estate portfolios managed by specialized companies.
The Parent Company has the right to practice its aforementioned objectives inside the State of Kuwait and abroad for itself
or as agent or representative to other, the Company has the right as well to have interest or to participate with entities that
practice similar operations or assist the Company in achieving its objectives inside and outside Kuwait, and such it has the
right to establish, form partnership, purchase or merge with those entities.
The consolidated financial statements of the Group for the year ended 31 December 2012 were authorised for issue by
the Board of Directors on 28 March 2013, and are issued subject to the approval of the Ordinary General Assembly of
the shareholders of the Parent Company. The shareholders’ General Assembly has the power to amend the consolidated
financial statements after issuance.
The Companies Law issued on 26 November 2012 by Decree Law no 25 of 2012 (the “Companies Law”), which was
published in the Official Gazette on 29 November 2012, cancelled the Commercial Companies Law No 15 of 1960. The
Companies Law was subsequently amended on 27 March 2013 by Decree Law no 97 of 2013 (the Decree).
According to article 2 and 3 of the Decree, Executive Regulations which shall be issued by the Minister of Industry and
Commerce by 26 September 2013 will determine the basis and rules which the Parent Company shall adopt to regularise
its affairs with the Companies Law as amended.
2. BASIS OF PREPERATION
The consolidated financial statements of the Group have been prepared on the historical cost basis, except for financial
assets available for sale, and investment properties that have been measured at fair value.
The consolidated financial statements are presented in Kuwaiti Dinars (“KD”), which is the functional currency of the
Parent Company. The consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
3. CHANGES IN ACCOUNTING POLICIES
New and amended standards and interpretations
The accounting policies adopted are consistent with those of the previous financial year, except for the following new and
amended to IFRS and IFRIC interpretation effective as of 1 January 2012:
The adoption of the standards or interpretations is described below:
IFRS 7 Financial Instruments: Disclosures — Enhanced Derecognition Disclosure Requirements
The amendment requires additional disclosure about financial assets that have been transferred but not derecognised to
enable the user of the Group’s financial statements to understand the relationship with those assets that have not been
derecognised and their associated liabilities.
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