Page 62 - FS-Q2-2023-EN

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

The following table shows an analysis of the financial and non-financial instruments recorded at fair value by level of
the fair value hierarchy:

June 30, 2023 (Audited)
Level 1 Level 2 Level 3 Total
Financial assets at FVTPL - - 590 590
Financial assets at FVTOCI - 1,851,852 5,248,306 7,100,158
Investment properties (a) - 45,672,210 100,659,515 146,331,725
Total - 47,524,062 105,908,411 153,432,473

December 31, 2022 (audited)
Level 1 Level 2 Level 3 Total
Financial assets at FVTPL 79,616 - 155,971 235,587
Financial assets at FVTOCI - 1,225,648 7,787,909 9,013,557
Investment properties (a) - 65,432,532 109,349,804 174,782,336
Total 79,616 66,658,180 117,293,684 184,031,480

June 30, 2022
Level 1 Level 2 Level 3 Total
Financial assets at FVTPL - - 378,447 378,447
Financial assets at FVTOCI - 1,240,239 8,225,190 9,465,429
Investment properties (a) - 45,120,701 135,617,884 180,738,585
Total - 46,360,940 144,221,521 190,582,461

(a) Investment properties include all the properties included under assets classified as held for sale.

For assets and liabilities that are recognized in the consolidated financial statements on a recurring basis, the Group
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization based on
the lowest level input that is significant to the fair value measurement as a whole at the end of each reporting period.

The management assessed that the fair values of cash and cash equivalent, term deposits, trade receivables, trade
payables and other current liabilities approximate their carrying amounts largely due to the short-term maturities of
these instruments.

The methods and assumptions were used to estimate the fair values:

a) The fair values of the quoted notes and bonds are based on price quotations at the reporting date.
b) The fair value of unquoted instruments, loans from banks and other financial liabilities, as well as other non-current
financial liabilities is estimated by using several methods including the adjusted book value and price multiples as
well as the discounting of future cash flows using rates currently available for debt on similar terms, credit risk and
remaining maturities.
c) The basis of the valuation of investment properties is fair value. The investment properties are revalued annually
based on independent accredited valuers having experience in the location and category of investment property
being valued. Valuations are based on current prices in an active market for similar properties of the same location
and condition, subject to similar leases and takes into consideration occupancy rates and returns on investment
and for the fair value details of investment properties are mentioned in Note (9).

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