Mazaya Holding_FS_E_Q1_2021

AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) MARCH 31, 2021 (All amounts are in Kuwaiti Dinars) 12 9. Annual general assembly The Annual General Meeting of the Shareholders held on February 22, 2021, has approved the consolidated financial statements of the Group for the year ended December 31, 2020, and approved the following items: • Not to distribute cash dividend or bonus share and not to pay Board of Directors remuneration for the year ended December 31, 2020. • To offset the entire accumulated loss balance amounted to KD 3,733,833 representing 5.42% from capital share as at December 31, 2020 against reducing the balance of the share premium from KD 21,655,393 to KD 17,921,560. The Annual General Meeting of the Shareholders held on February 20, 2020, has approved the consolidated financial statements of the Group for the year ended December 31, 2019, and not to distribute cash dividend or bonus share and not to pay Board of Directors remuneration for the year ended December 31, 2019. Subsequent to the accompanying interim consolidated financial information, the extraordinary General meeting of the Shareholders held on April 25, 2021 has approved to cancel 58,719,140 shares of direct treasury shares amounted to KD 18,625,088 by reducing the Parent Company’s share capital from KD 68,827,896 to KD 62,955,982 as an equivalent to the direct treasury shares’ par value amounted to KD 5,871,914 in addition to reduce the statutory reserve by KD 12,753,174. Those transactions will be recorded upon the completion of commercial registry notarization and other related procedures with the relevant competent authorities in this regard. 10. Fair value measurement The Group measures financial assets such as financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, and non-financial assets such as investment properties at fair value at the end of the financial peroid. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability, or • In the absence of a principal market, in the most advantageous market for the asset or liability. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: The details of fair value measurement hierarchy are as follows: Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities. Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.