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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
For assets and liabilities that are recognised in the consolidated financial statements on a recurring basis, the Group determines
whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input
that is significant to the fair value measurement as a whole) at the end of each reporting period.
Interest in joint ventures
The Group has investment in joint venture, which is a jointly controlled entity, whereby the venturer have a contractual arrangement
that establishes joint control over the economic activities of the entities. The arrangement requires unanimous agreement for
financial and operating decisions among the venturers. The Group recognises its interest in the joint venture using the equity
method. Under the equity method, investment in a joint venture is initially recognised at cost and adjusted thereafter for the post-
acquisition change in the Group’s share of net assets of the joint venture. Any goodwill arising on the acquisition of the Group’s
interest in a jointly control entity is accounted for in accordance with the Group’s accounting policy for goodwill arising on the
acquisition of joint venture.
The Group recognises in the consolidated statement of income its share of the total recognised profit or loss of the joint venture
from the date that influence or ownership effectively commenced until the date that it effectively ceases. Distributions received
from a joint venture reduce the carrying amount of the investment. Adjustments to the carrying amount may also be necessary for
changes in the Group’s share in the joint venture arising from changes in the joint venture’s equity that have not been recognised
in the joint venture’s statement of income. The Group’s share of those changes is recognised directly in equity. Unrealised gains
on transactions with an joint venture are eliminated to the extent of the Group’s share in the joint venture. Unrealised losses are
also eliminated unless the transaction provides evidence of impairment in the asset transferred
Investment in associate
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the
financial and operating policy decisions of the investee, but is not control or joint control over those policies. The considerations
made in determining significant influence are similar to those necessary to determine control over subsidiaries.
The Group’s investment in its associate is accounted for using the equity method. Under the equity method, the investment in the
associate is carried in the consolidated statement of financial position at cost plus post acquisition changes in the Group’s share
of net assets of the associate. Unrealised gains and losses resulting from transactions between the Group and the associate are
eliminated to the extent of the interest in the associate.
The Group recognises in the consolidated statement of income its share of the total recognised profit or loss of the associate from
the date that influence or ownership effectively commenced until the date that it effectively ceases. Distributions received from an
associate reduce the carrying amount of the investment. Adjustments to the carrying amount may also be necessary for changes
in the Group’s share in the associate arising from changes in the associate’s equity that have been recognised in the associate’s
statement of comprehensive income.
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