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 120 ANNUAL REPORT 2018 (All amounts are in Kuwaiti Dinars) 714,551 3,964,805 4,679,356 - - - - - - 1,833,959 6,474,108 8,308,067 Unquoted equity securities Portfolios Equity securities Unquoted Portfolios 2018 2018 2017 2017 As at December 2018, certain properties under development amounting to KD 1,365,358 (2017 – KD 3,460,700) were sold, however since the legal formalities were not finalized and title deeds were not transferred, these properties were still recorded in the books of the Group. The Group collected advances with total amount of KD 1,217,789 (2017 - 3,104,626) relating to properties under development. Certain properties held for trading amounting to KD 15,289,394 (2017 – KD 5,838,250) are collateralised against term loan and tawaroq and ijara payable (Note 15 and 16). 7. Advance payments for purchase of properties During the year ended December 31, 2018, the Group had transferred an amount of KD 14,660,610 from advance payments for purchase of properties to investment properties (Note 12), after receiving the title deeds of these properties. In addition, the Group had valued these properties, resulting in a gain from valuation amounting to KD 2,202,420 that is included in the consolidated statement of profit or loss for the financial year ended December 31, 2018. 8. Financial assets at fair value through other comprehensive income (“FVOCI”) On January 1, 2018, as a result of adoption of IFRS 9, the Group elected to reclassify into financial assets at FVOCI, Equity securities, Funds and portfolios amounting to KD 6,474,108 from financial assets available for sale (Note 9). Certain financial assets at FVOCI amounting to KD 3,964,805 are collateralised against tawaroq and ijara payables (Note 15). 9. Financial assets available for sale On January 1, 2018, as a result of adoption of IFRS 9, the Group elected to reclassify: - Equity securities amounting to KD 1,833,959 to financial assets at FVPL (Note 4). - Portfolios amounting to KD 6,474,108 to financial assets at FVOCI (Note 8). As of December 31, 2017, Financial assets available for sale amounting to KD 5,725,093 was pledged against tawaroq and ijara payable (Note 15). As of December 31, 2017, it was not possible to reliably measure the fair value of unquoted securities amounting to KD 1,833,959 due to non-availability of a reliable method that could be used to determine the fair value of such financial assets in accordance with IAS 39 then applied. Accordingly, they were stated at their cost less impairment losses 10. Investment in an associate 9,670,587 9,852,650 17.53% 17.53% Real Estate Development State of Kuwait 2018 2018 2017 2017 First Qatar Real Estate Development - K.S.C. (Closed) Name of associate Country of incorporation Principal activity Ownership percentage % Amount Amount