Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C. AND ITS SUBSIDIARIES
31 December 2012
National Labour Support Tax (NLST)
The Parent Company calculates the NLST in accordance with Law No. 19 of 2000 and the Ministry of Finance Resolutions
No. 24 of 2006 at 2.5% of taxable profit for the year. As per law, income from associates and subsidiaries, cash dividends
from listed companies which are subjected to NLST have been deducted from the profit for the year.
Zakat
Contribution to Zakat is calculated at 1% of the profit of the Parent Company in accordance with the Ministry of Finance
resolution No. 58 / 2007.
Segment information
A segment is a distinguishable component of the Group that engages in business activities from which it earns revenues
and incurs costs. The operating segments are used by the management of the Group to allocate resources and assess
performance and the reporting is consistent with the internal reports provided to the chief operation decision maker.
Operating segments exhibiting similar economic characteristics, product and services, class of customers where appropriate
are aggregated and reported as reportable segments.
Foreign currency translation
Each entity in the Group determines its own functional currency and items included in the financial statements of each
entity are measured using that functional currency.
Transactions and balances
Transactions in foreign currencies are initially recorded by the Group entities at their respective functional currency rates
prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated
at the functional currency spot rate of exchange ruling at the reporting date. All differences are taken to the consolidated
statement of income. Tax charges and credits attributable to exchange differences on those monetary items are also
recorded in consolidated statement of income.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on retranslation of
non-monetary items is treated in line with the recognition of gain or loss on change in fair value of the item (i.e., translation
differences on items whose fair value gain or loss is recognised in other comprehensive income or profit or loss is also
recognised in other comprehensive income or profit or loss, respectively).
Group companies
The assets and liabilities of foreign operations are translated into Kuwaiti Dinars at the rate of exchange prevailing at
the reporting date and their statement of incomes are translated at average exchange rates during the period where such
averages are reasonable approximation of actual rates. The exchange differences arising on the translation are recognised
in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income
relating to that particular foreign operation is recognised in the consolidated statement of income.
Other reserves
Other reserve is used to record the effect of changes in ownership interest in subsidiaries, without loss of control.
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