ANNUAL REPORT
2015
Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
31 December 2015
1. CORPORATE INFORMATION
Al Mazaya Holding Company - K.S.C.P. (the “Parent Company”) was incorporated on 7 November 1998 under the Companies
Law No. 25 of 2012 and amended thereto. This consolidated financial statement presents the results of the Parent Company and
its subsidiaries (collectively referred to as the “Group”). The registered head office of the Parent Company is at Mazaya Tower 01,
Al Murqab, P.O. Box 3546, Safat 13036, State of Kuwait.
The principal activities of the Parent Company as per the article of association are as follows:
Ownership of Kuwaiti and foreign shareholding companies, ownership of shares and portions of limited liability Kuwaiti and
foreign companies or participating in the formation of those companies, as well as managing and guaranteeing those companies,
granting loans to the companies in which it owns shares in and guaranteeing them towards others, provided that the percentage
of participation of the holding company in the capital of the borrowing company is not less than 20%, ownership of industrial
property rights including intellectual rights, trade marks, industrial marks, industrial fees or any other rights relating to such assets
and leasing them to other companies to utilize them whether inside or outside the state of Kuwait, ownership of the movable assets
and real properties needed to operate within the applicable laws, utilization of its available financial surpluses by investing them
in financial real estate portfolios managed by specialized companies.
The Parent Company has the right to practice its aforementioned objectives inside the State of Kuwait and abroad for itself or
as agent or representative to other, the Parent Company has the right as well to have interest or to participate with entities that
practice similar operations or assist the Parent Company in achieving its objectives inside and outside Kuwait, and such it has the
right to establish, form partnership, purchase or merge with those entities.
The consolidated financial statements of the Group for the year ended 31 December 2015 were authorised for issue by the Board
of Directors on 28 January 2016, and are issued subject to the approval of the Ordinary General Assembly of the shareholders
of the Parent Company. The shareholders’ General Assembly has the power to amend the consolidated financial statements after
issuance.
2. BASIS OF PREPERATION
The consolidated financial statements of the Group have been prepared on the historical cost basis, except for financial assets
available for sale, and investment properties that have been measured at fair value.
The consolidated financial statements are presented in Kuwaiti Dinars (“KD”), which is the functional currency of the Parent
Company. The consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
3. CHANGES IN ACCOUNTING POLICIES
New and amended standards and interpretations
The accounting policies used in the preparation of the consolidated financial statements are consistent with those used in previous
year, except for the adoption of the following new standards / amendments to IFRS effective as of 1 January 2015:
IFRS 3 Business Combinations
The amendment is applied prospectively and clarifies that all contingent consideration arrangements classified as liabilities (or
assets) arising from a business combination should be subsequently measured at fair value through profit or loss whether or not
they fall within the scope of IAS 39. This is consistent with the Group’s current accounting policy and thus, this amendment did
not impact the Group’s accounting policy.
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