32 / 43
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)
10. Properties under development
Properties under development are located in Kuwait and Dubai, UAE which are in the process of
construction or development for sale.
Balance at the beginning of the year
Effect of early application of IFRIC 15
Adjusted balance at the beginning of the year
Additions
Disposals (Note 23)
Related to acquisition of a newly consolidated subsidiary
Transferred from investment properties (Note 11)
Transferred to gross amount due to customers for properties
under development (Note 17)
Transferred to properties held for trading (Note 6)
Impairment loss on properties under development (Note 27)
Foreign currency translation adjustments
Balance at the end of the year
2008
108,325,614
108,325,614
144,498,928
(81,903,536)
41,547,608
3,650,124
(1,978,949)
(52,474,393)
(24,986,342)
10,129
136,689,183
2007
(Restated)
59,191,060
(8,556,272)
50,634,788
71,323,493
(18,981,788)
6,780,670
(1,431,549)
108,325,614
Properties under development include interest capitalized on term loans of KD 477,738 (2007 - Nil).
During the year, one of the subsidiaries sold 80% of a major project located in Dubai with an approximate
amount of AED 1.64 Billion, equivalent to KD 119 Millions, the total revenue related to the sale transaction
amounted to KD 47,734,956 and realized net profit arising from this sale transaction recognized during this
year amounted to KD 28,945,059 which represents 40% of the gross profit, while the remaining profit will
be recognized during 2009. The recognition of profit is based on the settlement percentage.
Properties with an amount of KD 41,547,608 which related to a newly acquired subsidiary, had a
significant decline in the recovery amount as of December 31, 2008, accordingly an impairment loss of
KD 24,986,342 was accounted in the consolidated statement of income.
11.
Investment properties
Balance at the beginning of the year
Additions
Disposals
Transferred to work in progress (Note 12)
Transferred to properties held for trading (Note 6)
Transfered to properties under development (Note 10)
Charges in fair value of investment properties
Balance at the end of the year
2008
25,662,337
(22,012,213)
(3,650,124)
2007
43,226,075
18,355,455
(21,976,921)
(7,281,900)
(6,780,670)
120,298
25,662,337
30