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N
otes To The Consolidated Financial Statements
AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES
As At 31 December 2016
ANNUAL REPORT
2016
of Finance resolution No. 582007/.
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 consolidated
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.
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