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AL MAZAYA HOLDING COMPANY K.S.C. (CLOSED) AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007
(All amounts are in Kuwaiti Dinars)
2006
Within 1
1 to 3
3 to 12
month
months
months
1 to 5 years
Total
Accounts payable and
other credit balances
605,209
6,156,006
23,524,412
30,285,627
Term loans
2,000,000
2,000,000
Wakala and Murabaha
payables
8,830,000
8,830,000
Deferred consideration on
acquisition of properties
33,421,846
33,421,846
605,209
14,986,006
25,524,412
33,421,846
74,537,473
e) Equity price risk
Equity price risk is the risk that fair values of equities decrease as the result of changes in level of equity
indices and the value of individual stocks. The equity price risk exposure arises from the Group's investment
in equity securities classified as investment at fair value through income statement and available for sale
investment.
The following table demonstrates the sensitivity to a reasonably possible change in equity indices as a result
of change in the fair value of these investments, to which the Group had significant exposure at December
31,2007:
2007
2006
Market indices
Change
in equity
price
%
Effect on
consolidated
statement of
income
Change
in equity
price
%
Effect on
consolidated
statement of
income
Kuwait Stock Exchange
±5%
±S%
±388,728
±428,477
Fair value of financial instruments
Fair value is defined as the amount at which the instrument could be exchanged in a current transaction
between knowledgeable willing parties in an arm's length transaction, other than in a forced or liquidation
sale. Fair values are obtained from quoted market prices, discounted cash flow models and other models as
appropriate. As of December 31, the fair values of financial instruments approximate their carrying amounts,
due to their short maturities, except for all unquoted investments available for sale, which are mentioned in
Note (6).
For financial assets and financial liabilities that are liquid or having a short term maturity (less than three
months) it is assumed that the carrying amounts approximate to their fair value. This assumption is also
applied to variable rate financial instruments.
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