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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)

Gains realized subsequently on the sale of treasury shares are first used to offset any recorded losses in the
order of share premium, reserves, retained earnings and the treasury shares reserve account. No cash dividends
are paid on these shares. The issue of bonus shares increases the number of treasury shares proportionately
and reduces the average cost per share without affecting the total cost of treasury shares.

Where any Group's company purchases the Parent Company’s equity share capital (treasury shares), the
consideration paid, including any directly attributable incremental costs is deducted from equity attributable to the
Parent Company’s equity holders until the shares are cancelled or reissued. Where such shares are subsequently
reissued, any consideration received, net of any directly attributable incremental transaction costs, is included in
equity attributable to the Parent Company’s shareholders.

r) Share-based payment transaction:
The Group operates an equity-based payment plan to its employees. Under the terms of the plan, shares are
granted to permanent employees. The cost of equity-settled transactions with employees is measured by
reference to the fair value at the date on which they are granted. The fair value of the shares is measured based
on market prices available taking into account the terms and conditions upon which those shares were granted.

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance and / or service conditions are fulfilled, ending on the date on which the relevant
employees become fully entitled to the award (‘the vesting date’). The cumulative expense recognised for equity-
settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period
has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest.

s) Revenue from contracts with customers:
Revenue from contracts with customers is recognized when control of the goods or services are transferred to
the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange
for those goods or services. The Group has generally concluded that it is the principal in its revenue arrangements,
because it typically controls the goods or services before transferring them to the customer.

The Group applies a five-step model are as follows to account for revenue arising from contracts:
- Step 1: Identify the contract with the customer – A contract is defined as an agreement between two or more
parties that creates enforceable rights and obligations and sets out the criteria for every contract that must be
met.
- Step 2: Identify the performance obligations in the contract – A performance obligation is a promise in a
contract with the customer to transfer goods or services to the customer.
- Step 3: Determine the transaction price – The transaction price is the amount of consideration to which the
Group expects to be entitled in exchange of transferring promised good or services to a customer, excluding
amounts collected on behalf of third parties.
- Step 4: Allocate the transaction price to the performance obligations in the contracts – For a contract that has
more than one performance obligation, the Group will allocate the transaction price to each performance
obligation in an amount that depicts the amount of consideration to which the Group expects to be entitled in
exchange for satisfying each performance obligation.
- Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
The Group exercises judgement, taking into consideration all of the relevant facts and circumstances when
applying each step of the model to contracts with their customers.

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