AnnualReport

otes To The Consolidated Financial Statements

AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES

As At 31 December 2016

ANNUAL REPORT

2016

3. CHANGES IN ACCOUNTING POLICIES

New and amended standards and interpretations

The accounting policies used in the preparation of these consolidated financial statements are consistent with

those used in the previous financial year, except for the adoption of the amendments to the existing standards

relevant to the Group, effective as of 1 January 2016.

Amendments to IFRS 10, IFRS 12 and IAS 28 Investment Entities: Applying the Consolidation Exception

The amendments address issues that have arisen in applying the investment entities exception under IFRS 10

Consolidated Financial Statements. The amendments to IFRS 10 clarify that the exemption from presenting

consolidated financial statements applies to a parent entity that is a subsidiary of an investment entity, when

the investment entity measures all of its subsidiaries at fair value.

Furthermore, the amendments to IFRS 10 clarify that only a subsidiary of an investment entity that is not an

investment entity itself and that provides support services to the investment entity is consolidated. All other

subsidiaries of an investment entity are measured at fair value. The amendments to IAS 28 Investments in

Associates and Joint Ventures allow the investor, when applying the equity method, to retain the fair value

measurement applied by the investment entity associate or joint venture to its interests in subsidiaries. These

amendments are applied retrospectively and do not have any impact on the Group as the Group does not

apply the consolidation exception.

IAS 34 Interim Financial Reporting

The amendment

clarifies that the required interim disclosures must either be in the interim consolidated

financial statements or incorporated by cross-reference between the interim consolidated financial statements

and wherever they are included within the interim financial report (e.g., in the management commentary or

risk report). The other information within the interim financial report must be available to users on the same

terms as the interim consolidated financial statements and at the same time. This amendment is applied

retrospectively. These amendments do not have any impact on the Group.

Amendments to IAS 16 and IAS 38: Clarification of Acceptable Methods of Depreciation and Amortisation

The amendments clarify the principle in IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets

that revenue reflects a pattern of economic benefits that are generated from operating a business (of which

the asset is a part) rather than the economic benefits that are consumed through use of the asset. As a result,

a revenue-based method cannot be used to depreciate property, plant and equipment and may only be used

in very limited circumstances to amortise intangible assets. The amendments are applied prospectively and

do not have any impact on the Group, given that it has not used a revenue-based method to depreciate its

non-current assets.

Annual Improvements 20122014- Cycle

IAS 19 Employee Benefits

The amendment clarifies that market depth of high quality corporate bonds is assessed based on the currency

in which the obligation is denominated, rather than the country where the obligation is located. When there

is no deep market for high quality corporate bonds in that currency, government bond rates must be used. This

amendment is applied prospectively. This amendment did not have any impact on the consolidated financial

statements of the Group.