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N
otes To The Consolidated Financial Statements
AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES
As At 31 December 2016
ANNUAL REPORT
2016
8. GOODWILL
Goodwill represents excess of consideration paid for acquisition of First Dubai Real Estate Development
Company K.S.C.P. shares over and above the fair value of the identifiable assets and liabilities. During the
year, the management has tested the carrying value of goodwill for impairment and has noted no impairment.
The carrying value of goodwill is tested for impairment on an annual basis (or more frequently if evidence
exists that goodwill might be impaired) by estimating the recoverable amount of the cash-generating unit
(«CGU») based on active market price which is higher than the carrying value of the CGU.
9. INVESTMENT PROPERTIES
Investment properties mainly comprise of the following:
Certain investment properties with a carrying value of KD 45,790,665 (31 December 2015: KD 42,408,670)
are collateralised against tawarruq payable amounting to KD 37,388,397 (31 December 2015: KD 45,097,173)
(Note 19). Certain investment properties with a carrying value of KD 33,060,275 (2015: KD 32,443,880) are
collateralised against ijara payable amounting to KD 18,753,945 (2015: KD 19,594,655) (Note 19).
Valuations of investment properties were conducted by two independent appraisers with a recognised and relevant
professional qualification and recent experience of the location and category of investment properties being valued.
For valuation purpose, the Group has selected the lower of these two valuations (2015: the lower of two valuations)
as required by the Capital Market Authority (CMA). Based on these valuations, the Group has recorded a revaluation
loss of KD 965,641 (2015: revaluation gain of KD 817,386) in the consolidated statement of income.
115,006,585
2,410,200
13,825,998
)1,469,252(
)965,641(
479,085
129,286,975
10,948,252
8,959,695
109,379,028
129,286,975
92,312,256
20,234,071
-
)229,476(
817,386
1,872,348
115,006,585
12,140,291
6,746,295
96,119,999
115,006,585
2016
KD
2016
KD
Balance at the beginning of the year
Additions
Arising on business combination (Note 6)
Disposals
Net (loss) gain from fair value adjustments
Foreign currency translation adjustments
Balance at the end of the year
Land
Properties under development
Developed properties held for earning rental income
2015
KD
2015
KD
107