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AL MAlAYA HOLDING COMPANY
K.S.C.
(CLOSED) AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007
(All amounts are in Kuwaiti Dinars)
lAS 1 "Presentation of Financial Statements" (Revised)
The application of lAS 1 (Revised), which will be effective for the annual periods beginning on or after
January 1, 2009, will impact the presentation of financial statements to enhance the usefulness of
the information presented,
lAS 23 "Borrowing Cost" (Revised)
The application of lAS 23 (Revised), which will be effective for the annual periods beginning on or
after January 1, 2009, will require an entity to capitalize borrowing costs attributable to the
acquisition, construction or production of a qualifying asset as a part of the cost of that asset and
removing an option of expensing these borrowing costs in the consolidated statement of income,
IFRIC Interpretation 11 "IFRS 2 - Group and Treasury Share Transactions"
The application of IFRIC Interpretation 11, which will be effective for annual periods beginning on or
after March 1, 2007, provides guidance as to whether certain share options given to employees
should be accounted as an equity-settled or cash-settled transaction,
b) Recognition / derecognition of financial assets and financial liabilities
A financial asset or a financial liability is recognized when the Group becomes a party to the
contractual provisions of the instrument. Financial asset (in whole or in part) is de-recognized when
the contractual rights to the cash flows from the financial asset expire or when the group transfers
substantially all the risks and rewards of ownership or when the group has neither transferred or
retained substantially all the risks and rewards of ownership and when it no longer has control over
the asset or a proportion of the assets. A financial liability is derecognized when the obligation
specified in the contract is discharged, cancelled or expired.
c) Critical accounting estimates and judgments
The Group makes judgments, estimates and assumptions concerning the future. The preparation of
consolidated financial statements in conformity with International Financial Reporting Standards
requires management to make judgments, estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
consolidated financial statements and the reported amounts of revenue and expenses during the
year, Actual results could differ from the estimates,
a) Judgments
In the process of applying the Group's accounting policies which are described in note 2,
management has made the following judgments that have the most significant effect on the amounts
recognized in the consolidated financial statements,
(i) Revenue Recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Group
and the revenue can be reliably measured, The determination of whether the revenue recognition
criteria as specified under lAS 18 are met requires significant judgment.
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