Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C. AND ITS SUBSIDIARIES
31 December 2012
Investment properties mainly comprise of the following;
6,901,421
67,572,725
74,474,146
8,319,013
65,537,659
73,856,672
Land
Developed property held for earning rental income
2012
KD
2011
KD
Certain investment properties with a carrying value of KD 14,283,688 (31 December 2011: KD 9,708,334) are collateralised
against term loans amounting to KD 38,000,000 (31 December 2011: KD 42,500,000) (note 18).
(i) Valuations of investment properties were conducted as at 31 December 2012 by two independent appraisers with
a recognised and relevant professional qualification and recent experience of the location and category of investment
properties being valued. The change in fair value was calculated based on the lower of the two values. Fair value of the
investment properties is arrived at by reference to industry acknowledged methods of valuations that depend on market
data including recent sales value of comparable properties.
39
73,856,672
2,198,232
345,710
)1,965,753(
-
39,285
74,474,146
116,921,489
5,899,754
801,770
)11,239,341(
)38,438,463(
)88,537(
73,856,672
Balance at the beginning of the year
Additions
Transferred from properties held for trading (Note 12)
Net changes in fair value (refer note (i) below)
Adjustments (refer note (ii) below)
Foreign currency translation adjustments
Balance at the end of the year
2012
KD
2011
KD
7. GOODWILL
Goodwill represents excess of consideration paid for acquisition of First Dubai Real Estate Development Company K.S.C.
(Closed) (FDDRE) share over and above the fair value of the identifiable assets and liabilities. During the year management
has tested the carrying value of goodwill for impairment based on cash flows from the underlying real estate projects of
FDDRE. The management has used cash flow projection for 1 to 2 years, applying 15% discount rate and recorded an
impairment loss of KD 825,000. For projecting cash flows, management has used assumptions of market rate per sq. ft.
derived from the valuation performed for properties held for trading in the books of FDDRE.
8. INVESTMENT PROPERTIES
