Annual report eng.2018

N otes To The Consolidated Financial Statements AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES As At 31 December 2018 101 ANNUAL REPORT 2018 (All amounts are in Kuwaiti Dinars) ‘12-month expected credit losses’ are recognized for Stage 1 while ‘lifetime expected credit losses’ are recognized for Stage 2. Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected life of the financial instrument. ECLs for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets and charged to consolidated statement of profit or loss. The Group considers a financial asset in default when contractual payments are 30 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. d - 1/ 3) Transition Changes in accounting policies resulting from the adoption of IFRS 9 have been applied as described below: a) Comparative periods have not been restated. Differences in the carrying amounts of financial assets and financial liabilities resulting from the adoption of IFRS 9 are recognized in retained earnings and reserves as at January 1, 2018. Accordingly, the information presented for the year ended December 31, 2017 does not reflect the requirements of IFRS 9 and therefore is not comparable to the information presented for the year ended December 31, 2017. b) The following assessments have been made on the basis of the facts and circumstances that existed at the date of initial application. • The determination of the business model within which a financial asset is held. • The designation and revocation of previous designations of certain financial assets and financial liabilities as measured at FVPL. • The designation of certain equity instruments not held for trading as at FVOCI. The impact of this change in accounting policy as at January 1, 2018 has been to decrease retained earnings by KD 7,810,292, to decrease the fair value reserve by KD 317,232 and decrease non-controlling interests by KD 42,330 as follows: 317,232 )317,232( - - 11,878,779 )630,955( )7,179,337( 4,068,487 Fair value reserve Retained earnings Closing balance under IAS 39 as of December 31, 2017 Impact on reclassification and re-measurements: Equity instruments from available-for-sale to FVPL Impact on recognition of Expected Credit Losses on debt instruments other than through FVPL: Expected credit losses under IFRS 9 for debt instruments at amortized cost (Note 5) Opening balance after amendements of IFRS 9 on date of initial application of January 1, 2018 Non- controlling interests 12,230,426 )17,970( )24,360( 12,188,096