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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 15 Revenue from contracts with customers
IFRS 15 was issued by IASB on 28 May 2014 and is effective for annual periods beginning on or after 1 January 2018. IFRS 15
supersedes IAS 11 – Construction Contracts and IAS 18 – Revenue along with related IFRIC 13, IFRIC 18 and SIC 31 from the
effective date. This new standard would remove inconsistencies and weaknesses in previous revenue recognition requirements,
provide a more robust framework for addressing revenue issues and improve comparability of revenue recognition practices
across entities, industries, jurisdictions and capital markets. The Group is in the process of evaluating the effect of IFRS 15 on the
group and do not expect any significant impact on adoption of this standard.
Annual improvements for 2010- 2012 and 2011- 2013 cycle which are effective from 1 January 2016 are not expected to have a
material impact on the Group.
Additional disclosures will be made in the consolidated financial statements when these standards, revisions and amendments
become effective. The Group, however, expects no material impact from the adoption of the amendments on its consolidated
financial position or performance.
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Parent Company and its subsidiaries as at 31
December 2015. Control is achieved when the group is exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over the investee. Specifically, the group controls an investee
if, and only if, the group has:
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);
• Exposure, or rights, to variable returns from its involvement with the investee, and
• The ability to use its power over the investee to affect its returns.
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