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ANNUAL REPORT
2015
Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
31 December 2015
IFRS 8 Operating Segments
The amendments are applied retrospectively for annual periods beginning on or after 1 January 2015 and clarify that:
• An entity must disclose the judgements made by management in applying the aggregation criteria in paragraph 12 of IFRS 8,
including a brief description of operating segments that have been aggregated and the economic characteristics (e.g., sales and
gross margins) used to assess whether the segments are ‘similar’.
• The reconciliation of segment assets to total assets is only required to be disclosed if the reconciliation is reported to the chief
operating decision maker, similar to the required disclosure for segment liabilities. The Group has not applied the aggregation
criteria in IFRS 8.12 and, thus, this amendment did not impact the Group’s accounting policy.
The Group has presented the reconciliation of segment assets to total assets in previous years and continues to disclose the same
in Note 27 in this year’s consolidated financial statements as the reconciliation is reported to the chief operating decision maker
for the purpose of its decision making.
IAS 24 Related Party Disclosures
The amendment is applied retrospectively for annual periods beginning on or after 1 January 2015 and clarifies that a management
entity (an entity that provides key management personnel services) is a related party subject to the related party disclosures. In
addition, an entity that uses a management entity is required to disclose the expenses incurred for management services. This
amendment is not relevant for the Group as it does not receive any management services from other entities.
IFRS 13 Fair Value Measurement
The amendment is applied prospectively and clarifies that the portfolio exception in IFRS 13 can be applied not only to financial
assets and financial liabilities, but also to other contracts within the scope of IAS 39. The Group does not apply the portfolio
exception in IFRS 13.
Other amendments to IFRSs which are effective for annual accounting period starting from 1 January 2015 did not have any
material impact on the accounting policies, financial position or performance of the Group.
Standard issued but not yet effective
Standards issued but not yet effective up to the date of issuance of the Group’s consolidated financial statements are listed below.
This listing of standards issued is those that the Group reasonably expects to have an impact on disclosures, financial position or
performance when applied at a future date. The Group intends to adopt these standards when they become effective.
IFRS 9 Financial Instruments
The IASB issued IFRS 9 - Financial Instruments in its final form in July 2014 and is effective for annual periods beginning on or after
1 January 2018 with a permission to early adopt. IFRS 9 sets out the requirements for recognizing and measuring financial assets,
financial liabilities and some contracts to buy or sell non- financial assets. This standard replaces IAS 39 Financial Instruments:
Recognition and Measurement. The adoption of this standard will have an effect on the classification and measurement of Group
'
s
financial assets but is not expected to have a significant impact on the classification and measurement of financial liabilities. The
Group is in the process of quantifying the impact of this Standard on the Group’s consolidated financial statements, when adopted.
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