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

30.3.2 Equity price risk

Equity price risk arises from changes in the fair values of equity investments. The Group manages this through

diversification of investments in terms of geographical distribution and industry concentration. All of the Group’s

quoted investments are quoted on the regional Stock Exchanges.

The effect on other comprehensive income (OCI) as a result of a change in the fair value of equity instruments held

as available-for-sale financial assets at 31 December 2016 due to 5% increase in the following market indices with

all other variables held constant is as follows:

30.3.3 Foreign currency risk

Currency risk is the risk that the value of the financial instrument on monetary items will fluctuate due to changes

in the foreign exchange rates. The Group incurs foreign currency risk on transactions denominated in a currency

other than the Kuwaiti Dinar. The Group ensures that the net exposure is kept to an acceptable level, by dealing in

currencies that do not fluctuate significantly against the Kuwaiti Dinar.

If the Kuwaiti Dinar had strengthened or weakened against the foreign currencies assuming a change of 5%, this

would have the following impact on the consolidated statement of income:

3,901

)101,293(

1,962

5,298

218,684

2016

2015

Effect on OCI

Effect on profit for the year

Market indices

KSE ( 5%)

Others

UAE Dirhams ( 5%)

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