AnnualReport

ANNUAL REPORT

2016

otes To The Consolidated Financial Statements

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

As At 31 December 2016

IFRS 7 Financial Instruments: Disclosures

Servicing contracts

The amendment clarifies that a servicing contract that includes a fee can constitute continuing involvement

in a financial asset. An entity must assess the nature of the fee and the arrangement against the guidance for

continuing involvement in IFRS 7 in order to assess whether the disclosures are required. The assessment

of which servicing contracts constitute continuing involvement must be done retrospectively. However, the

required disclosures need not be provided for any period beginning before the annual period in which the

entity first applies the amendments.

Amendments to IAS 1 Disclosure Initiative

The amendments to IAS 1 clarify, rather than significantly change, existing IAS 1 requirements.The amendments

clarify:

• The materiality requirements in IAS 1;

• That specific line items in the consolidated statement(s) of income and other comprehensive income and

the consolidated statement of financial position may be disaggregated;

• That entities have flexibility as to the order in which they present the notes to consolidated financial

statements;

• That the share of other comprehensive income of associates and joint ventures accounted for using the

equity method must be presented in aggregate as a single line item, and classified between those items

that will or will not be subsequently reclassified to consolidated statement of income.

Furthermore, the amendments clarify the requirements that apply when additional subtotals are presented

in the consolidated statement of financial position and the consolidated statement(s) of income and other

comprehensive income. These amendments do not have any impact on the consolidated financial statements

of the Group.

Standard issued but not yet effective

Standards and amendments to standards issued but not yet effective up to the date of issuance of the Group’s

consolidated financial statements are listed below. The Group intends to adopt those standards when they

become effective.

IFRS 9 Financial Instruments

The IASB issued IFRS 9 - Financial Instruments in its final form in July 2014 and is effective for annual periods

beginning on or after 1 January 2018 with a permission to early adopt. IFRS 9 sets out the requirements

for recognizing and measuring financial assets, financial liabilities and some contracts to buy or sell non-

financial assets. This standard replaces IAS 39 Financial Instruments: Recognition and Measurement. The

adoption of this standard will have an effect on the classification and measurement of Group›s financial assets

but is not expected to have a significant impact on the classification and measurement of financial liabilities.

The Group is in the process of quantifying the impact of this Standard on the Group’s consolidated financial

statements, when adopted.

IFRS 15 Revenue from contracts with customers

IFRS 15 was issued by IASB on 28 May 2014 and is effective for annual periods beginning on or after 1 January

2018. IFRS 15 supersedes IAS 11 – Construction Contracts and IAS 18 – Revenue along with related IFRIC 13,

IFRIC 18 and SIC 31 from the effective date. This new standard would remove inconsistencies and weaknesses

in previous revenue recognition requirements, provide a more robust framework for addressing revenue

issues and improve comparability of revenue recognition practices across entities, industries, jurisdictions

and capital markets. The Group is in the process of evaluating the effect of IFRS 15 on the Group and does not

expect any significant impact on adoption of this standard.