Annual report eng.2018

N otes To The Consolidated Financial Statements AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES As At 31 December 2018 135 ANNUAL REPORT 2018 (All amounts are in Kuwaiti Dinars) e) Equity price risk Equity price risk is the risk that fair values of equity instruments decrease as the result of changes in level of equity indices and the value of individual stocks. To manage such risks, the Group diversifies its investments in different sectors within its investment portfolio and are continuously monitored. 31. Fair value measurement The Group measures financial assets such as financial assets at FVPL and financial assets at FVOCI and non– financial assets such as investment properties at fair value at each reporting date. 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: 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. The following table shows an analysis of captions recorded at fair value by level of the fair value hierarchy: During the year, there were no transfers between Level 1, Level 2 and Level 3. The fair value details of investment properties are mentioned in Note (12). ±217,878 ±502,831 2018 2017 2017 Increase (decrease) against Kuwaiti Dinar Level 3 Level 3 Effect on consolidated statement of profit or loss 5% ± 5% ± United Arab Emirates Dirham Turkish Lira Financial assets at FVPL Financial assets at FVOCI Total Financial assets available for sale 981,739 4,679,356 5,661,095 6,474,108