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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
The Group’s share of those changes is recognised directly in equity. Unrealised gains on transactions with an associate are
eliminated to the extent of the Group’s share in the associate. Unrealised losses are also eliminated unless the transaction provides
evidence of impairment in the asset transferred.
An assessment of investment in an associate is performed when there is an indication that the asset has been impaired, or
that impairment losses recognised in prior years no longer exist. Whenever impairment requirements of IAS 36, indicate that
investment in an associate may be impaired, the entire carrying amount of investment is tested by comparing its recoverable
amount with its carrying value.
The difference in reporting dates of the associates and the Group is not more than three months. Adjustments are made for
the effects of significant transactions or events that occur between that date and the date of the Group’s consolidated financial
statements. The associate’s accounting policies conform to those used by the Group for like transactions and events in similar
circumstances.
Upon loss of significant influence over the associate, the Group measures and recognises any retaining investment at its fair value.
Any differences between the carrying amount of the associate upon loss of significant influence and the fair value of the remaining
investment and proceeds from disposal are recognised in the consolidated statement of income.
Investment properties
Investment properties comprises developed property and property under construction or re-development held to earn rentals
or for capital appreciation or both. Property held under a lease is classified as investment properties when the definition of an
investment property is met.
Investment properties is measured initially at cost including transaction costs. Transaction costs include transfer taxes, professional
fees for legal services and initial leasing commissions to bring the property to the condition necessary for it to be capable of
operating. The carrying amount also includes the cost of replacing part of an existing investment property at the time that cost is
incurred if the recognition criteria are met.
Subsequent to initial recognition, investment property is stated at fair value. Gains or losses arising from changes in the fair values
are included in the consolidated statement of income in the year in which they arise.
Investment property is derecognised when it has been disposed of or permanently withdrawn from use and no future economic
benefit is expected from its disposal. Any gains or losses on the retirement or disposal of investment property are recognised in the
consolidated statement of income in the year of retirement or disposal.
Gains or losses on the disposal of investment property are determined as the difference between net disposal proceeds and the
carrying value of the asset.
Transfers are made to investment property when, and only when, there is a change in use, evidenced by the end of owner
occupation or commencement of an operating lease. Transfers are made from investment property when, and only when, there
is a change in use, evidenced by commencement of owner occupation or commencement of development with a view to sale.
Property and equipment
Property and equipment are stated at cost less accumulated depreciation and any impairment in value.
Depreciation is calculated on a straight line basis over the estimated useful lives of assets as follows:
Computer hardware and software
3 years
Furniture and fixtures
5 years
Motor vehicles
5 years
The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances indicate
the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated
recoverable amount, the assets are written down to their recoverable amount.
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