Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C. AND ITS SUBSIDIARIES
31 December 2012
Subsequent to initial recognition, investment property is stated at fair value. Gains or losses arising from changes in the fair
values are included in the consolidated statement of income in the year in which they arise.
Investment property is derecognised when it has been disposed of or permanently withdrawn from use and no future
economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of investment property are
recognised in the consolidated statement of income in the year of retirement or disposal.
Gains or losses on the disposal of investment property are determined as the difference between net disposal proceeds and
the carrying value of the asset in the previous full period consolidated financial statements.
Transfers are made to investment property when, and only when, there is a change in use, evidenced by the end of owner
occupation or commencement of an operating lease. Transfers are made from investment property when, and only when,
there is a change in use, evidenced by commencement of owner occupation or commencement of development with a
view to sale.
Property and equipment
Property and equipment are stated at cost less accumulated depreciation and any impairment in value.
Depreciation is calculated on a straight line basis over the estimated useful lives of assets as follows:
Computer hardware and software
3 years
Furniture and fixtures
5 years
Motor vehicles
5 years
The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances
indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the
estimated recoverable amount, the assets are written down to their recoverable amount.
Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs to sell and
its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell,
recent market transactions are taken into account, if available.
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