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The previously disclosed financial impact on 06/02/2023, based on the subsidiary’s financial statements balances included in the consolidated financial statements as of December 31, 2022, was as follows:
1- Direct profit from the disposal of that subsidiary amounting to almost 130 thousand Kuwaiti Dinars.
2- Reclassification of the foreign currency translation adjustment losses for that subsidiary amounting to KD 22 million as of 31 December 2022 that was previously included in the parent company’s statement of shareholders’ equity to the statement of income which will result in the following:
a. No financial impact on the total shareholders’ equity of the company.
b. No financial impact on the book value per share of the company.
c. Loss recognition in the consolidated statement of income amounting to KD 22 million which will be booked in the fiscal period where the transaction will be executed, which resulted from the reclassification of those losses from the foreign currency translation reserve in the company’s shareholder equity to the statement of income in accordance with the International Financial Reporting Standards.
Those losses have been already calculated and recorded in the company's financial statements during previous years within the foreign currency translation reserve in the company's shareholders equity.
The final financial impact of that deal will be determined in the company's consolidated financial statements upon completion of the signing procedures and implementation of all terms of the deal.
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