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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
Financial assets available for sale
Financial assets available for sale are those non-derivative financial assets that are designated as available for sale or are not
classified as loans and receivables. After initial recognition at cost including transaction costs associated with the acquisition,
financial assets whose fair value cannot be reliably measured are carried at cost less impairment losses, if any.
Changes in fair value of available for sale investments are reported as a separate component of other comprehensive income
until the investment is derecognised or the investment is determined to be impaired, at which time, the cumulative gain or loss
previously reported in other comprehensive income is included in the consolidated statement of income.
Financial liabilities
Term loans and bank borrowings
After initial recognition, interest bearing term loans and bank overdraft are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in the income statement when the liabilities are derecognized as well as through the
EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included in finance costs in the consolidated statement of income.
Term loans are carried on the consolidated statement of financial position at their principal amounts less any repayment.
Installments due within one year from the reporting date are shown as current liabilities.
Tawarruq payables
Tawarruq payable represent amounts due to financial institutions arising from an Islamic financing arrangement where the liability
is settled on a deferred settlement basis for assets purchased. Tawarruq payable are stated at the gross amount of the payables,
net of deferred profit payable. Tawarruq cost is expensed on a time apportionment basis by taking account of the profit rate
attributable and the balance outstanding.
Ijara payable
Ijara payable represents the amount payable on a deferred settlement basis for assets purchased under ijara and leasing
arrangements. Ijara payable is stated at the aggregate of the minimum lease payment due, net of any deferred costs.
Accounts payable and other credit balances
Liabilities are recognised for amounts to be paid in the future for goods or services received, whether billed by the supplier or not.
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