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AL MAlAYA HOLDING COMPANY K.S.C. (CLOSED) AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
(All amounts are in Kuwaiti Dinars)
lAS 39: Financial Instruments - Recognition and Measurement
Effective July 1, 2008, the Group has implemented certain amendments to revised lAS 39: Financial
Instruments - Recognition and Measurement. The Group has identified the deterioration of the global
financial markets and the consequent impact on the financial markets of the Middle East region as a rare
situation resulting in the implementation of these amendments.
IFRS
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Financial Instruments: Disclosures
Implementation of the amendments to revised lAS 39: Financial Instruments - Recognition and
Measurement has resulted in additional disclosures under IFRS
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Financial Instruments: Disclosures in
the accompanying consolidated financial statements.
The financial impact of adopting these amendments is disclosed in Note 2(b) to the accompanying
consolidated financial statements
The preparation of consolidated financial statements in conformity with International Financial Reporting
Standards requires management to make judgments, estimates and assumptions in the process of
applying the Group's accounting policies. Significant accounting judgments, estimates and assumptions
are disclosed in Note 2(d).
Standards and Interpretations issued but not
effective
The following IASB Standard and Interpretation have been issued but are not yet effective, and have not
yet been adopted by the Group:
IFRS 8 "Operating Segments"
The application of IFRS 8, which will be effective for the annual periods beginning on or after January 1,
2009, will result in disclosure of information to evaluate the nature and financial effects of the business
activities in which it engages and the economic environments in which it operates.
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.
Revised IFRS 3 Business Combinations (2008)
Revised IFRS 3, which will be effective for business combinations for which the acquisition date is on or
after the beginning of the first annual reporting period beginning on or after 1 July 2009 with prospective
application, incorporates the following changes:
- The definition of a business has been broadened, which is likely to result in more acquisitions being
treated as business combinations.
- Contingent consideration will be measured at fair value, with subsequent changes therein recognized
in the consolidated statement of income.
- Transaction costs, other than share and debt issue costs, will be expensed as incurred.
- Any pre-existing interest in the acquiree will be measured at fair value with the gain or loss recognized
in the consolidated statement of income.
- Any non-controlling (minority) interest will be measured at either fair value, or at its proportionate
interest in the identifiable assets and liabilities of the acquiree, on a transaction-by-transaction basis.
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