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
The summarized financial information of the associates is given as follows:
Investment in associate with carrying value of KD 9,181,630 (2013: KD 9,192,519) is collateralised against certain term
loans (note 19).
During the current year, the Group has lost significant influence on one of its associate Mazaya Qatar Real Estate
Development Q.S.C. (Mazaya Qatar) and accordingly this investment has been classified as financial assets available for
sale and carried at fair value. The Group realised a gain of KD 2,928,815. Out of which KD 2,034,868 represents the
difference between the carrying value and fair value of the equity interest in Mazaya Qatar as on the date of reclassification
and KD 893,947 represents the gain on disposal of an associate and included in the consolidated statement of income.
The Group has sold its interest in Mazaya Qatar after classifying it as an available for sale investment and realised a gain
of KD 1,614,418 included in net investment income in the consolidated statement of income.
Investment in associates include quoted associates with a carrying value of KD Nil (2013: KD 4,836,897) having a market
value of KD Nil (2013: KD 5,549,983).
Movement in the balance of investment in associate is as follows:
2014
KD
10,691,184
(1,509,554)
9,181,630
1,386,772
1,283,407
Parent Company’s share of assets and liabilities:
Assets
Liabilities
Equity
Parent Company’s share revenue and results:
Revenue
Group’s share of profit (loss) for the year
2013
KD
16,008,513
(2,657,951)
13,350,562
1,770,052
22,819
43
10. INVESTMENT IN ASSOCIATES
Ownership %
Qatar
Kuwait
-
9,181,630
9,181,630
Mazaya Qatar Real
Estate Development
Q.S.C
First Qatar Real
Estate Development
K.S.C.(Closed)
2013
KD
2014
KD
2014
Country of
Incorporation
Principal
activities
2013
4,836,897
8,513,665
13,350,562
-
17.54
5.72
17.54
Real
estate
services
Real
estate
services
Balance at the beginning of the year
Disposal (refer note below)
Dividend received
Transfer to available for sale investment (refer
note below)
Share of results
Foreign currency translation adjustments
Balance at the end of the year
2014
KD
13,350,562
(1,899,268)
(287,019)
(3,213,764)
1,283,407
(52,288)
9,181,630
2013
KD
14,082,064
(551,458)
(297,880)
-
22,819
95,017
13,350,562
70
Valuation of properties held for trading were conducted by two independent appraisers with recognised and relevant
professional qualifications and recent experience of the location and category of properties being valued. The reversal of
impairment provision was calculated based on the lower of the two valuations. Net realisable value of the property held
for trading is arrived at by reference to industry acknowledged methods of valuations that depend on market data including
recent sales value of comparable properties.
13. PROPERTIES HELD FOR TRADING
12. ADVANCES FOR PURCHASE OF PROPERTIES
2014
KD
86,385,937
16,373,446
(9,168,087)
2,003,838
3,156,089
98,751,223
Balance at the beginning of the year
Additions
Disposals
Written back of impairment loss during the year
Foreign currency translation adjustments
Balance at the end of the year
2013
KD
93,788,247
8,728,048
(17,070,175)
704,717
235,100
86,385,937
Available for sale investments with a fair value of KD 6,781,345 (31 December 2013: KD 6,846,035) are pledged against
certain term loans disclosed in Note 19.
Unquoted equity shares are carried at cost, less impairment, if any, due to the non-availability of reliable measures of
their fair values. Management has performed a review of its unquoted equity investments to assess whether impairment
has occurred in the value of these investments and recorded an impairment loss of KD 61,904 (2013: KD 311,873) in the
consolidated income statement. Based on the latest available financial information, management is of the view that no
further impairment loss is required as at 31 December 2014 in respect of these investments. Impairment loss of KD Nil
(2013: KD 2,443) is recorded in consolidated income statements on quoted equity shares.
During the year, one of the Group’s subsidiaries has paid TRY 114,000,000 equivalent to KD 14,656,980 as an advance to
a joint venture of the Parent Company (Note 9 and 25) to purchase properties in Turkey.
Further KD 1,661,576 included in the advances for purchase of properties represents reversal of provision on receivables
recorded in the prior years relating to acquisition of a land in Dubai (Note 24).
2014
KD
2,727,631
1,931,434
7,413,632
12,072,697
Quoted:
Equity securities
Unquoted:
Equity securities
Funds and managed portfolios
2013
KD
2,706,947
2,565,811
7,478,115
12,750,873
11. FINANCIAL ASSETS AVAILABLE FOR SALE
44
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