Notes to The Consolidated Financial Statements
AL MAZAYA HOLDING K.S.C. (HOLDING) AND ITS SUBSIDIARIES
For the year ended 31 December 2011
Fair value of financial instruments
Management believes that the fair value of the financial instruments at the end of the reporting period is not significantly
different from their respective carrying values.
The different levels pertaining to fair valuation of financial instruments have been defined as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices);
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following table presents the Group’s equity securities that are measured at fair value at December 31:
29. OPERATIONAL RISK
Operational risk is the risk of loss arising from inadequate or failed internal processes, human error, and systems failure or
from external events. The Group has a set of policies and procedures, which are approved by the Board of Directors and
are applied to identify, assess and supervise operational risks. The Group’s management ensures compliance with policies
and procedures and monitors operational risk as part of overall risk management.
1,980,094
2,496,543
1,393,094
8,476,761
11,490,663
6,085,331
5,174,879
4,419,702
16,603,492
15,631,734
18,406,908
24,081,917
2011
Investments available for sale
2010
Investments available for sale
2009
Investments available for sale
Level 1
KD
Level 2
KD
Level 3
KD
Total
KD
50
