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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)

Upon loss of significant influence over the associate, the Group measures and recognizes any retaining
investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant
influence and the fair value of the retaining investment and proceeds from disposal is recognized in consolidated
statement of profit or loss.

i) Joint arrangements
The Group classifies its interests in joint arrangements as joint ventures depending on the Group’s right to the
assets and obligations for the liabilities of the arrangements.

a) Joint Ventures
A joint venture is a joint arrangement, whereby the parties that have joint control of the arrangement have
rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of
an arrangement, which exists only when decisions about the relevant activities require unanimous consent
of the parties sharing control.

Investment in Joint Ventures is accounted based on equity method similar to associates.

b) Joint Operations
A joint operation is a joint arrangement, whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require unanimous consent of the parties sharing control.

When a group entity undertakes its activities under joint operations, the Group as a joint operator recognizes
in relation to its interest in a joint operation:
• Its assets, including its share of any assets held jointly.
• Its liabilities, including its share of any liabilities incurred jointly.
• Its revenue from the sale of its share of the output arising from the joint operation.
• Its share of the revenue from the sale of the output by the joint operation.
• Its expenses, including its share of any expenses incurred jointly.

The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation
in accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses.

When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a sale
or contribution of assets), the Group is considered to be conducting the transaction with the other parties to
the joint operation, and gains and losses resulting from the transactions are recognized in the Group's
consolidated financial statements only to the extent of other parties' interests in the joint operation.

When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a
purchase of assets), the Group does not recognize its share of the gains and losses until it resells those
assets to a third party.

j) Non-current assets held for sale
Non-current assets (and disposal groups) are classified as held for sale if their carrying amount will be recovered
through a sale transaction rather than through continuing use. This condition is regarded as met only when the
sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition.
Management must be committed to the sale, which should be expected to qualify for recognition as a completed
sale within one year from the date of classification. Non-current assets (and disposal groups) classified as held
for sale are measured at the lower of the assets’ previous carrying amount and fair value less costs to sell. Non-
current assets once classified as held for sale are not depreciated or amortized. Assets classified as held for sale
are presented separately as current items in the consolidated statement of financial position.

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