Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
31 December 2014
Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
31 December 2014
1. CORPORATE INFORMATION
Al Mazaya Holding Company - K.S.C.P. (the “Parent Company”) was incorporated on 7 November 1998 under the
Companies Law No. 25 of 2012 and amended thereto. This consolidated financial statement presents the results of the
Parent Company and its subsidiaries (collectively referred to as the “Group”). The registered head office of the Parent
Company is at Mazaya Tower 01, Al Murqab, P.O. Box 3546, Safat 13036, State of Kuwait.
The principal activities of the Parent Company as per the article of association are as follows:
Ownership of Kuwaiti and foreign shareholding companies, ownership of shares and portions of limited liability Kuwaiti
and foreign companies or participating in the formation of those companies, as well as managing and guaranteeing those
companies, granting loans to the companies in which it owns shares in and guaranteeing them towards others, provided
that the percentage of participation of the holding company in the capital of the borrowing company is not less than 20%,
ownership of industrial property rights including intellectual rights, trade marks, industrial marks, industrial fees or any
other rights relating to such assets and leasing them to other companies to utilize them whether inside or outside the state
of Kuwait, ownership of the movable assets and real properties needed to operate within the applicable laws, utilization
of its available financial surpluses by investing them in financial real estate portfolios managed by specialized companies.
The Parent Company has the right to practice its aforementioned objectives inside the State of Kuwait and abroad for itself
or as agent or representative to other, the Company has the right as well to have interest or to participate with entities that
practice similar operations or assist the Company in achieving its objectives inside and outside Kuwait, and such it has the
right to establish, form partnership, purchase or merge with those entities.
The consolidated financial statements of the Group for the year ended 31 December 2014 were authorised for issue by
the Board of Directors on 18 January 2015, and are issued subject to the approval of the Ordinary General Assembly of
the shareholders of the Parent Company. The shareholders’ General Assembly has the power to amend the consolidated
financial statements after issuance.
2. BASIS OF PREPERATION
The consolidated financial statements of the Group have been prepared on the historical cost basis, except for financial
assets available for sale, and investment properties that have been measured at fair value.
The consolidated financial statements are presented in Kuwaiti Dinars (“KD”), which is the functional currency of the
Parent Company. The consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
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3. CHANGES IN ACCOUNTING POLICIES
New and amended standards and interpretations
The accounting policies used in the preparation of the consolidated financial statements are consistent with those used in
previous year, except for the adoption of the following new standards / amendments to IFRS effective as of 1 January 2014:
IAS 32 Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32
These amendments clarify the meaning of ’currently has a legally enforceable right to set-off’ and the criteria for non-
simultaneous settlement mechanisms of clearing houses to qualify for offsetting and is applied retrospectively. These
amendments have no impact on the Group, since none of the entities in the Group has any offsetting arrangements.
IAS 36 Recoverable Amount Disclosures for Non-Financial Assets
These amendments remove the unintended consequences of IFRS 13 Fair Value Measurement on the disclosures required
under IAS 36 Impairment of Assets. In addition, these amendments require disclosure of the recoverable amounts for the
assets or cash-generating units (CGUs) for which an impairment loss has been recognised or reversed during the period.
These amendments have no material impact on the Group’s consolidated financial statements.
Annual Improvements 2010 - 2012 Cycle
In the 2010 - 2012 annual improvements cycle, the IASB issued seven amendments to six standards, which included an
amendment to IFRS 13 Fair Value Measurement. The amendment to IFRS 13 is effective immediately and, thus, for periods
beginning at 1 January 2014, and it clarifies in the Basis for Conclusions that short-term receivables and payables with no
stated interest rates can be measured at invoice amounts when the effect of discounting is immaterial. This amendment to
IFRS 13 has no impact on the Group.
Annual Improvements 2011 - 2013 Cycle
In the 2011 - 2013 annual improvements cycle, the IASB issued four amendments to four standards, which included an
amendment to IFRS 1 First-time Adoption of International Financial Reporting Standards. The amendment to IFRS 1 is
effective immediately and, thus, for periods beginning at 1 January 2014, and clarifies in the Basis for Conclusions that
an entity may choose to apply either a current standard or a new standard that is not yet mandatory, but permits early
application, provided either standard is applied consistently throughout the periods presented in the entity’s first IFRS
financial statements. This amendment to IFRS 1 has no impact on the Group, since the Group is an existing IFRS preparer.
Standard issued but not yet effective
Standards issued but not yet effective up to the date of issuance of the Group’s financial statements are listed below. This
listing of standards issued is those that the Group reasonably expects to have an impact on disclosures, financial position
or performance when applied at a future date. The Group intends to adopt these standards when they become effective.
IFRS 9 Financial Instruments
The IASB issued IFRS 9 - Financial Instruments in its final form in July 2014 and is effective for annual periods beginning on
or after 1 January 2018 with a permission to early adopt. IFRS 9 sets out the requirements for recognizing and measuring
financial assets, financial liabilities and some contracts to buy or sell non- financial assets. This standard replaces IAS 39
Financial Instruments: Recognition and Measurement. The adoption of this standard will have an effect on the classification
and measurement of Group's financial assets but is not expected to have a significant impact on the classification and
measurement of financial liabilities. The Group is in the process of quantifying the impact of this standard on the Group's
financial statements, when adopted.
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