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AL MAZAYA HOLDING COMPANY K.S.C. (CLOSED) AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
SEPTEMBER 30, 2008
(All amounts are in Kuwaiti Dinars)
1.
Incorporation and activities of the Group
AI Mazaya Holding Company - K.S.C. (Closed) was incorporated on November 7, 1998 under the
Commercial Companies Law No. 15 of 1960 and amendments thereto.
The Parent Company is engaged in investment in local and foreign companies, real estate properties and
consultancy services. The registered Head Office of the Parent Company is at Salhiya complex, Fahed AI
Salem Street, P.O. Box 3546, Safat 13036, Kuwait.
These interim consolidated financial information were approved for issue by the Board of Directors on
October 21,2008.
2.
Basis of preparation
The interim consolidated financial information of the company has been prepared in accordance with
Intemational Accounting Standard 34, Interim consolidated financial Reporting. The accounting policies used
in the preparation of the interim consolidated financial information are consistent with those used in the
preparation of the audited financial statements for the year ended December 31,2007, except for:
• The change in policy for borrowing costs incurred on qualifying assets under lAS 23 Borrowing costs.
Until December 31, 2007, the Group's accounting policy was to expense borrowing costs incurred on
the income statement. Under the revised policy, borrowing costs are capitalized, if they are directly
attributable to a project, as part of properties under development, over the period of the construction
until the project concemed is completed and becomes ready for its intended use, on the basis of actual
borrowings and actual expenditure incurred on the project. Capitalization of borrowing costs ceases
when substantially all activities necessary to prepare the project for its intended use are complete.
The following new accounting policy has been adopted by the Group during the period for properties
held for trading under lAS 2 Inventories.
• The Group classifies properties intended for sale in the ordinary course of business in the short term as
properties held for trading. Properties held for trading are initially recorded at cost being its purchase
price and any directly attributable acquisition costs. After initial recognition, properties held for trading
are stated at the lower of cost or net realizable value.
The interim consolidated financial information do not include all of the information and footnotes required for
complete financial statements prepared in accordance with Intemational Financial Reporting Standards. In the
opinion of management, all adjustments consisting of normal recurring accruals considered necessary for a fair
presentation have been included. Operating results for the period ended September 30, 2008 are not
necessarily indicative of the results that may be expected for the year ending December 31, 2008. For further
information, refer to the financial statements and notes thereto for the year ended December 31, 2007.
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