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ANNUAL REPORT
2016
N
otes To The Consolidated Financial Statements
AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES
As At 31 December 2016
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Parent Company and its
subsidiaries as at 31 December 2016. Control is achieved when the group is exposed, or has rights, to variable
returns from its involvement with the investee and has the ability to affect those returns through its power over
the investee. Specifically, the group controls an investee if, and only if, the group has:
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);
• Exposure, or rights, to variable returns from its involvement with the investee, and
• The ability to use its power over the investee to affect its returns.
Generally, there is a presumption that a majority of voting rights result in control. To support this presumption
and when the group has less than a majority of the voting or similar rights of an investee, the group considers
all relevant facts and circumstances in assessing whether it has power over an investee, including:
• The contractual arrangement with the other vote holders of the investee;
• Rights arising from other contractual arrangements;
• The group’s voting rights and potential voting rights.
The financial statements of the subsidiary are prepared at the same reporting year as the Parent Company
using consistent accounting policies. Subsidiaries are consolidated from the date on which the Group obtains
control and continues to be consolidated until the date that such control ceases.
All material intra-group balances and transactions, including material unrealised gains and losses arising on
intra-group transactions are eliminated on consolidation.
Non-controlling interest represenats the portion of profit and loss and net assets not held by the Group and are
presented separately in the consolidated statement of income and within equity in the consolidated statement
of financial position separately from equity attributable to the equity holders of the Parent Company.
A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity
transaction. Losses are attributed to the non-controlling interests even if that results in a deficit balance.
If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities,
non-controlling interest and other components of equity while any resultant gain or loss is recognised in profit
or loss. Any investment retained is recognised at fair value.
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