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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)
v) Foreign currencies
Foreign currency transactions are translated into Kuwaiti Dinars at rates of exchange prevailing on
the date of the transactions. Monetary assets and liabilities denominated in foreign currency at the
balance sheet date are retranslated into Kuwaiti Dinars at rates of exchange prevailing on that date.
Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated
at the rates prevailing on the date when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the retranslation of
monetary items, are included in profit or loss for the period. Translation differences on non-monetary
items such as equity investments which are classified as investments at fair value through income
statement are reported as part of the fair value gain or loss. Translation differences on non-monetary
items such as equity investments classified as available for sale are included in "cumulative changes
in fair value" in the consolidated statement of changes in equity.
x) Financial instruments
Financial assets and financial liabilities carried on the balance sheet include cash and cash
equivalents, accounts receivable, investments, term loans, accounts payable and Wakala and
Murabaha payables. The accounting policies on recognition and measurement of these items are
disclosed in the respective accounting policies found in this Note.
Financial instruments are classified as liabilities or equity in accordance with the substance of the
contractual arrangement. Interest, dividends, gains, and losses relating to a financial instrument
classified as a liability are reported as expense or income. Distributions to holders of financial
instruments classified as equity are charged directly to equity. Financial instruments are offset when
the Group has a legally enforceable right to offset and intends to settle either on a net basis or to
realize the asset and settle the liability simultaneously.
y) Contingencies
Contingent liabilities are not recognized but disclosed in the consolidated financial statements except
when the possibility of an outflow of resources embodying economic benefits is remote.
A contingent asset is not recognized in the consolidated financial statements but disclosed when an
inflow of economic benefits is probable.
z) Segment reporting
A segment is a distinguishable component of the Group that is engaged either in providing products
or services (business segment), or in providing products and services within a particular economic
environment (geographical
segment), which is subject to risks and returns that are different from
those of other segments.
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