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

In such situations, the percentage of work completed is measured based on the costs incurred up until the end

of the reporting period as a proportion of total costs expected to be incurred.

Gain on sale of investments financial assets available-for-sale

Gain on sale of investment is measured by the difference between the sale proceeds and the carrying amount of

investment at the date of disposal, and is recognised at the time of the sale.

Rental income

Rental income receivable from operating leases except for contingent rental income which is recognised when it

arises. Initial direct costs incurred in negotiating and arranging an operating lease are recognised as an expense

over the lease term on the same basis as the lease income.

Dividends income

Dividend income is recognized when the right to receive payment is established, which is generally when

shareholders approve the dividend.

Management fees

Management fees earned for the provision of services over a period of time are accrued over that period.

Finance income

Finance income is recognised as accrued using the effective yield method.

Leases

The determination of whether an arrangement is, or contains a lease is based on the substance of the

arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use

of a specific asset or assets and the arrangement conveys a right to use the asset.

Group as a lessor

Leases where the Group retains substantially all the risks and benefits of ownership of the asset are classified

as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying

amount of the leased asset and recognised over the lease term on the same basis as rental income.

Group as a lessee

Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified

as operating leases. Operating lease payments are recognised as an expense in the consolidated statement of

income on a straight-line basis over the lease term, except for contingent rental payments which are expensed

when they arise.

A property interest that is held by the Group under an operating lease may be classified and accounted for as

an investment property when the property otherwise meets the definition of an investment property, evaluated