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
8,086,345
Shares
688,278,956
(68,690,479)
619,588,477
13.05 fils
6,001,051
Shares
688,278,956
(68,690,479)
619,588,477
9.69 fils
Profit for the year attributable to equity holders of the Parent Company
Weighted average number of ordinary shares
Less: weighted average number of treasury shares
Weighted average number of shares outstanding
Basic and diluted earnings per share attributable to the equity holders
of the parent company- (fils)
2014
KD
2013
KD
39
The weighted average number of ordinary shares and treasury shares data used to compute basic and diluted earnings per
share for the comparative year have been restated to take account of the bonus shares issued during the year (Note 16).
7. GOODWILL
Goodwill represents excess of consideration paid for acquisition of First Dubai Real Estate Development Company K.S.C.P.
(FD) shares over and above the fair value of the identifiable assets and liabilities. During the year management has tested
the carrying value of goodwill for impairment based on fair value of FD shares quoted on the Kuwait Stock Exchange and
has noted no impairment.
Impairment of trade accounts receivable
An estimate of the collectible amount of trade accounts receivable is made when collection of the full amount is no longer
probable. For individually significant amounts, this estimation is performed on an individual basis. Amounts which are
not individually significant, but which are past due, are assessed collectively and a provision applied according to the
length of time past due, based on historical recovery rates. Any difference between the actual amounts collected in future
periods and the amounts expected will be recognised in the consolidated statement of income.
Impairment of goodwill
The Group tests whether goodwill is impaired at least on an annual basis. This requires an estimation of the value in use
of the cash-generating units to which the goodwill is allocated. Estimating the value in use requires the Group to make an
estimate of the expected future cash flows from the cash-generating unit and also to choose a suitable discount rate in order
to calculate the present value of those cash flows.
6. BASIC AND DILUTED EARNING PER SHARE
Basic and diluted earnings per share is computed by dividing the profit for the year attributable to the equity holders of the
Parent Company by the weighted average number of shares outstanding during the year less treasury shares.
The following reflects the profit and share data used in the basic and diluted profit per share computations:
66
7,703,249
5,929,028
78,679,979
92,312,256
7,605,552
-
81,489,319
89,094,871
Land
Properties under development
Developed property held for earning rental income
Certain investment properties with a carrying value of KD24,821,578 (31December 2013: KD19,080,400) are collateralised
against term loans and tawarrouq payable amounting to KD 37,986,841 (31 December 2013: KD 23,500,000) (Note 19
and 20). Certain investment properties with a carrying value of KD 31,193,139 are collateralised against ijara payable
amounting to KD 19,970,000 (Note 20).
Valuations of investment properties were conducted by two independent appraisers with a recognised and relevant
professional qualification and recent experience of the location and category of investment properties being valued. The
change in fair value was calculated based on the lower of the two values. Fair value of the investment properties is arrived
at by reference to industry acknowledged methods of valuations that depend on market data including recent sales value
of comparable properties, annual rental income and capitalization rate. Further details are provided in Note 29. Operating
expenses incurred on non-rental income generating investment property is not material.
Investment properties mainly comprise of the following;
Investment properties mainly comprise of the following;
89,094,871
5,890,258
)2,876,451(
)1,199,949(
1,403,527
92,312,256
74,474,146
10,149,170
)700,089(
5,083,148
88,496
89,094,871
Balance at the beginning of the year
Additions
Disposals
Net (loss) gain from fair value adjustment (refer note below)
Foreign currency translation adjustments
Balance at the end of the year
2014
KD
2014
KD
2013
KD
2013
KD
8. INVESTMENT PROPERTIES
67
