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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)

When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities
of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether
the Group will retain a non-controlling interest in its former subsidiary after the sale.

When the Group is committed to a sale plan involving disposal of an investment in an associate or, a portion of
an investment in an associate, the investment, or the portion of the investment in the associate that will be
disposed of is classified as held for sale when the criteria described above are met, and the Group ceases to
apply the equity method in relation to the portion that is classified a held for sale. Any retained portion of an
investment in an associate that has not been classified as held for sale continues to be accounted for using the
equity method.

Any impairment loss on a disposal group first is allocated to goodwill, and then to remaining assets and liabilities
on pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee
benefit assets, investment property and biological assets, which continue to be measured in accordance with the
Group’s accounting policies. Impairment losses on initial classification as held for sale and subsequent gains or
losses on remeasurement are recognized in the consolidated statement of profit or loss. Gains are not recognized
in excess of any cumulative impairment loss.

Non-current assets that cease to be classified as held for sale (or cease to be included in a disposal group
classified as held for sale) are measured at the lower of:

a) its carrying amount before the asset (or disposal group) was classified as held for sale, adjusted for any
depreciation, amortization or revaluations that would have been recognized had the asset (or disposal group)
not been classified as held for sale, and
b) its recoverable amount at the date of the subsequent decision not to sell.

k) Business combinations and Goodwill

a) Business Combinations
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured
as the aggregate of the consideration transferred, measured at acquisition date fair value and the amount of
any non-controlling interests in the acquiree. For each business combination, the acquirer measures the non-
controlling interests in the acquiree that are present ownership interests and entitle their holders to a
proportionate share of the assets in the event of liquidation either at fair value or at the proportionate share of
the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic circumstances and pertinent
conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts
by the acquiree.

If the business combination is achieved in stages, the fair value of the acquirer’s previously held equity interest
in the acquiree is remeasured to fair value as at the acquisition date and the resulting gain / loss is included
in consolidated statement of profit or loss or other comprehensive income as appropriate.

Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition
date. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or
liability will be recognized in accordance with IFRS 9: Financial Instruments. If the contingent consideration is
classified as equity, it shall not be remeasured until it is finally settled within equity.

If the initial accounting for business combination is incomplete by the end of the reporting period in which the
combination occurs, the Group reports provisional amounts for the items for which the accounting in
incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or
liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the
acquisition date that, if known, would have affected the amounts recognized at that date.

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