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) 13 The following table shows an analysis of captions recorded at fair value by level of the fair value hierarchy: March 31, 2021 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss - - 373,366 373,366 Financial assets at fair value through other comprehensive income - 1,266,148 9,824,281 11,090,429 Investment properties - 48,391,601 119,471,482 167,863,083 - 49,657,749 129,669,129 179,326,878 December 31, 2020 (Audited) Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss - - 372,616 372,616 Financial assets at fair value through other comprehensive income - 1,259,696 9,880,250 11,139,946 Investment properties - 49,212,941 119,593,655 168,806,596 - 50,472,637 129,846,521 180,319,158 March 31, 2020 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss 40,176 - 714,921 755,097 Financial assets at fair value through other comprehensive income - - 1,913,095 1,913,095 Investment properties - 47,928,929 121,684,648 169,613,577 40,176 47,928,929 124,312,664 172,281,769 There were no transfers between Level 2 and Level 3 during the period. 11. Significant Impact of COVID-19 The recent outbreak of the coronavirus (“COVID-19”) across various geographies globally, which was declared a pandemic by the World Health Organization, has caused disruption to business and economic activities. The fiscal and monetary authorities around the world, including Kuwait, have announced various support measures across the globe to counter the possible adverse implications of COVID-19. The Group has taken several measures to manage its risk associated with the pandemic, including identification of the most vulnerable sectors primarily affected and placing added measures to ensure a high level of scrutiny. The uncertainties caused by COVID-19 required the Group to consider the impact of volatility in the forward-looking macro-economic factors in order to manage the credit risk and liquidity risk and to determine the impact of COVID-19 consequences on the fair value measurement of financial and non-financial instruments in order to reflect that impact in the consolidated financial statements since the pandemic outbreak and till the accompanied interim consolidated financial information date. The Group has performed an assessment on its ability to continue as a going concern considering current economic conditions and all available information about future risks and uncertainties. The projections have been prepared to cover the Group’s future performance, capital and liquidity requirements. The impact of COVID-19 may continue to evolve, but currently, the projections show that the Group has the required resources to continue in operations on a going concern, such position that remains significantly unaffected and unchanged since December 31, 2019. As a result, those interim consolidated financial information have been prepared on a going concern basis.