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AL MAZAYA HOLDING COMPANY KS.C. (CLOSED) AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
(All amounts are in Kuwaiti Dinars)
On disposal of a subsidiary, jointly controlled entity or associate, the attributable amount of goodwill is
included in the determination of the profit or loss on disposal.
Where there is an excess of the Group's interest in the net fair value of acquiree's identifiable assets,
liabilities and contingent liabilities over cost, the Group is required to reassess the identification and
measurement of the net identifiable assets and measurement of the cost of the acquisition and
recognize immediately in the consolidated statement of income any excess remaining after that
remeasurement.
r) Impairment of assets
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible
assets to determine whether there is any indication that those assets have suffered an impairment
loss. If any such indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss (if any). Where it is not possible to estimate the
recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-
generating unit to which the asset belongs.
Recoverable amount is the higher of the fair value less costs to sell and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a discount
rate that reflects current market assessments of the time value of money and the risks specific to the
asset.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount.
An impairment loss is recognized immediately in the consolidated statement of income, unless the
relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a
revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating
unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment
loss been recognized for the asset (cash-generating unit) in prior years. A reversal of an impairment
loss is recognized immediately in the consolidated statement of income, unless the relevant asset is
carried at a revalued amount, in which case the reversal of the impairment loss is treated as a
revaluation increase.
s) Accounts payable
Accounts payable are recognized initially at fair value and subsequently measured at amortized cost
using the effective interest method.
t) Wakalaand Murabaha payable
Wakala and Murabaha payables represent an agreement whereby the Company takes a certain
amount of cash from another party, and invests it according to specific conditions in return for a
certain fee (percentage of the amount invested). They are subsequently re-measured and carried out
at amortized cost using the effective yield method. Costs of Wakala and Murabaha payable are
expensed on a time proportion basis.
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