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AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC)
AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2023
(All amounts are in Kuwaiti Dinar)
The Group recognizes revenue either at a point in time or over time, when (or as) the Group satisfies performance
obligations by transferring the promised goods or services to its customers. The Group transfers control of a good
or service over time (rather than at a point in time) when any of the following criteria are met:
The customer simultaneously receives and consumes the benefits provided by the entity’s performance as
the entity performs.
The Group’s performance creates or enhances an asset (e.g., work in process) that the customer controls as
the asset is created or enhanced.
The Group’s performance does not create an asset with an alternative use to the entity and the entity has an
enforceable right to payment for performance completed to date.
Control is transferred at a point in time if none of the criteria for a good or service to be transferred over time are
met. The Group considers the following factors in determining whether control of an asset has been transferred:
The Group has a present right to payment for the asset.
The customer has legal title to the asset.
The Group has transferred physical possession of the asset.
The customer has the significant risks and rewards of ownership of the asset.
The customer has accepted the asset.
Incremental costs of obtaining a contract with a customer are capitalized when incurred as the Group expects to
recover these costs and such costs would not have incurred if the contract has not been obtained. Sales
commission incurred by the Group is expensed as the amortization period of such costs is less than a year.
Revenue for the Group arises from the following activities:
Sale of properties held for trading
Revenue is recognized when control over the property has been transferred to the customer either at a point in
time or over time. The properties have generally no alternative use for the Group due to contractual restrictions,
and control is deemed to be transferred to the customer during the development period when the Group had an
enforceable right to payment for performance completed to date. Therefore, revenue is recognized and measured
at the transaction price agreed under the contract according to the performance completed.
Rent
Rental income is recognized, when earned, on a time apportionment basis.
Medical services
Medical services income is recognized, when earned, on a time apportionment basis.
Management fees
Fees income earned from services provided over a period of time is recognized over this time.
Other income
Other income is recognized on accrual basis.
t) Provisions:
A provision is recognized when the Group has a present legal or constructive obligation as a result of a past event
and it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the
end of each reporting period and adjusted to reflect the current best estimate. Where the effect of the time value
of money is material, the amount of a provision is the present value of the expenditures expected to be required
to settle the obligation.
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