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AL MAZAYA HOLDING COMPANY K.S.C. (CLOSED) AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
(All amounts are in Kuwaiti Dinars)
m) Properties under development
Properties acquired, constructed or in the course of construction for sale are classified as properties
under development. Unsold properties are stated at cost.
Sold properties in the course of
development are stated at cost plus attributable profit/loss less progress billings. The cost of
properties under development includes the cost of land and other related expenditure which are
capitalized as and when activities that are necessary to get the properties ready for sale are in
progress. Net realizable value represents the estimated selling price less costs to be incurred in
selling the property.
The property is considered to be completed when all related activities, including the infrastructure and
facilities for the entire project, have been completed. At that stage, the total asset value is eliminated
from properties under development.
n) Investment properties
Investment properties, which are properties, held to earn rentals and/or for capital appreciation, are
stated at their fair value at the consolidated balance sheet date. Gains or losses arising from changes
in the fair value of investment properties are included in the consolidated statement of income for the
period in which they arise.
Investment properties are derecognized when either they have been disposed of or when the
investment property is permanently withdrawn from use and no future economic benefit is expected
from its disposal. Gains or losses arising on the retirement or disposal of an investment property are
recognized in the consolidated statement of income.
Transfers are made to investment property when, and only when, there is a change in use, evidenced
by the end of owner occupation, commencement of an operating lease to another party or completion
of construction or development. Transfers are made from investment property when, and only when,
there is a change in use, evidenced by commencement of owner occupation or commencement of
development with a view to sale.
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