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AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC)
AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2023
(All amounts are in Kuwaiti Dinar)

Subsequent expenditure is capitalised to the asset’s carrying amount only when it is probable that future
economic benefits associated with the expenditure will flow to the Group and the cost of the item can be measured
reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment
property is replaced, the carrying amount of the replaced part is derecognised.

Investment properties are derecognized when either they have been disposed off or when the investment property
is permanently withdrawn from use and no future economic benefit is expected from its disposal. Gains or losses
arising on the retirement or disposal of an investment property are recognized in the consolidated statement of
profit or loss.

Transfers are made to investment property when, and only when, there is a change in use, evidenced by the end
of owner occupation or commencement of an operating lease to another party. Transfers are made from
investment property when, and only when, there is a change in use, evidenced by commencement of owner
occupation or commencement of development with a view to sale. If owner-occupied property becomes an
investment property, the Group accounts for such property in accordance with the policy stated under property,
plant and equipment up to the date of change in use.

h) Investment in associates
Associates are those entities in which the Group has significant influence which is the power to participate in the
financial and operating policy decisions of the associate but is not control or joint control over those policies.
Under the equity method, investment in associates are carried in the consolidated statement of financial position
at cost as adjusted for changes in the Group’s share of the net assets of the associate from the date that
significant influence effectively commences until the date that significant influence effectively ceases, except
when the investment is classified as held for sale, in which case it is accounted as per IFRS 5 "Non-current
Assets Held for Sale and Discontinued Operations”.

The Group recognizes in its consolidated statement of profit or loss for its share of results of operations of the
associate and in its other comprehensive income for its share of changes in other comprehensive income of
associate.
Losses of an associate in excess of the Group’s interest in that associate (which includes any long-term interests
that, in substance, form part of the Group’s net investment in the associate) are not recognized except to the
extent that the Group has an obligation or has made payments on behalf of the associate.

Gains or losses arising from transactions with associates are eliminated against the investment in the associate
to the extent of the Group’s interest in the associate.

Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets,
liabilities and contingent liabilities of the associate recognized at the date of acquisition is recognized as goodwill.
The goodwill is included within the carrying amount of the investment in associates and is assessed for
impairment as part of the investment. If the cost of acquisition is lower than the Group’s share of the net fair
value of the identifiable assets, liabilities and contingent liabilities, the difference is recognized immediately in
consolidated statement of profit or loss.

The Group determines at each reporting date whether there is any objective evidence that the investment in
associate is impaired and determine if necessary, to recognize any impairment loss with respect to the
investment. If there is such evidence, the entire carrying amount of the investment (including goodwill) is tested
for impairment and the Group calculates the amount of impairment as the difference between the recoverable
amount of the associate and its carrying value and recognizes the amount in consolidated statement of profit or
loss. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the
investment subsequently increases.

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