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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
Valuation of properties held for trading were conducted by two independent appraisers with recognised and relevant professional
qualifications and experience of the location and category of properties being valued. The reversal of impairment provision
was calculated based on the lower of the two valuations. Net realisable value of the properties held for trading is arrived at by
reference to industry acknowledged methods of valuations that depend on market data including recent sales value of comparable
properties, annual rental income and capitalization rate.
13. PROPERTIES HELD FOR TRADING
12. ADVANCES FOR PURCHASE OF PROPERTIES
2015
KD
98,751,223
11,347,712
(42,375,649)
1,411,010
2,518,837
71,653,133
Balance at the beginning of the year
Additions
Disposals
Written back of impairment loss during the year
Foreign currency translation adjustments
Balance at the end of the year
2014
KD
86,385,937
16,373,446
(9,168,087)
2,003,838
3,156,089
98,751,223
Financial assets available for sale with a fair value of Nil (2014: KD 6,781,345) are pledged against certain term loans disclosed
in Note 19. Financial assets available for sale investments with a fair value of KD 6,377,658 (2014: Nil) are collateralised against
certain tawarruq payable (Note 20).
Unquoted equity shares are carried at cost, less impairment, if any, due to the non-availability of reliable measures of their fair
values. Management has performed a review of its unquoted equity investments to assess whether impairment has occurred in the
value of these investments and recorded an impairment loss of KD 38,349 (2014: KD 61,904) in the consolidated statement of
income. Based on the latest available financial information, management is of the view that no further impairment loss is required
as at 31 December 2015 in respect of these investments. Impairment loss of KD 16,598 (2014: Nil) is recorded in consolidated
statement of income on funds and managed portfolios.
Advances for purchase of properties includes an amount of TRY 115,000,000 equivalent to KD 11,933,090 (2014: KD 14,656,980)
paid by one of the Group’s subsidiaries as an advance to a joint venture of the Parent Company (Note 24) to purchase properties
in Turkey.
2015
KD
2,022,930
1,952,600
7,146,012
11,121,542
Quoted:
Equity securities
Unquoted:
Equity securities
Funds and managed portfolios
2014
KD
2,727,631
1,931,434
7,413,632
12,072,697
11. FINANCIAL ASSETS AVAILABLE FOR SALE
75