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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)
viii) Management, commission and consultancy income
- Management fees are recognizedon accrual basis.
- Commission income and consultancy revenue is recognized at the time the related services are
provided.
y) Fiduciary assets
Assets held in trust or in a fiduciary capacity are not treated as assets of the Group and accordingly
are not included in these consolidated financial statements but are disclosed in the Notes to the
consolidated financial statements.
z) Foreigncurrencies
Foreign currency transactions are translated into Kuwaiti Dinars at rates of exchange prevailing on the
date of the transactions. Monetary assets and liabilities denominated in foreign currency at the
balance sheet date are retranslated into Kuwaiti Dinars at rates of exchange prevailing on that date.
Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at
the rates prevailing on the date when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the retranslation of
monetary items, are included in profit or loss for the period. Translation differences on non-monetary
items such as equity investments which are classified as investments at fair value through income
statement are reported as part of the fair value gain or loss. Translation differences on non-monetary
items such as equity investments classified as available for sale are included in "cumulative changes
in fair value" in the consolidated statement of changes in equity.
The assets and liabilities of the foreign subsidiary are translated into Kuwaiti Dinars at rates of
exchange prevailing at the balance sheet date. The results of the subsidiary are translated into
Kuwaiti Dinars at rates approximating the exchange rates prevailing at the dates of the transactions.
Foreign exchange differences arising on translation are recognized directly in the consolidated
statement of changes in equity. Such translation differences are recognized in profit or loss in the
period in which the foreign operation is disposed off.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets
and liabilities of the foreign entity and translated at the closing rate.
aa) Borrowingcosts
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use
or sale, are added to the cost of those assets, until such time as the assets are substantially ready for
their intended use or sale. Investment income earned on the temporary investment of specific
borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs
eligible for capitalization.
All other borrowing costs are recognized in the consolidated statement of income in the year in which
they are incurred.
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