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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
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.
5. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the Group’s consolidated financial statements requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods.
Judgments
In the process of applying the Group›s accounting policies, management has made the following judgements,
apart from those involving estimations, which has the most significant effect on the amounts recognised in the
consolidated financial statements:
Classification of property
The Group determines whether a property is classified as investment properties or properties held for trading:
• Investment properties comprise land and buildings which are not occupied substantially for use by, or in the
operations of, the Group, nor for sale in the ordinary course of business, but are held primarily to earn rental
income and/or capital appreciation.
• Properties held for trading comprise properties that are held for sale in the ordinary course of business.
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