11 / 29
AL MAlAYA HOLDING COMPANY K.S.C. (HOLDING) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31,2010
(All amounts are in Kuwaiti Dinars)
1.
Incorporation and activities
AI Mazaya Holding Company - K.S.C. (Holding) was incorporated on November 7, 1998 under the
Commercial Companies Law No. 15 of 1960 and amendments thereto.
The Parent Company is engaged in investment in local and foreign companies, real estate properties and
consultancy services.
The registered office of the Parent Company is at Salhia Complex, Fahed AI Salem Street, P.O. Box 3546,
Safat 13036, Kuwait.
The number of employees as at December 31, 2010 was 94 (2009 -103).
These consolidated financial statements were approved for issue by the Board of Directors on March 30,
2011. The shareholders' General Assembly has the power to amend these consolidated financial statements
after issuance.
2.
Significant accounting policies
The accompanying consolidated financial statements have been prepared in accordance with the
Intemational Financial Reporting Standards issued by the Intemational Accounting Standard Board (IASB).
Significant accounting policies are summarized as follows:
a) Basis of preparation
The consolidated financial statements are presented in Kuwaiti Dinars and are prepared under the
historical cost convention, except for the following items that are stated at their fair value:
•
Quoted investments available for sale
•
Investment properties
The accounting policies applied by the Group are consistent with those used in the previous year
except for the changes due to implementation of the following new and amended International
Financial Reporting Standards as of January 1, 2010:
lAS 1 (Amendment), "Presentation of financial statements"
The Amendment is part of the IASB's annual improvements project published in April 2009. The
amendment provides clarification that the potential settlement of a liability by the issue of equity is not
relevant to its classification as current or noncurrent. By amending the definition of current liability, the
amendment permits a liability to be classified as non-current (provided that the Group has an
unconditional right to defer settlement by transfer of cash or other assets for at least 12 months after
the accounting period) notwithstanding the fact that the entity could be required by the counterparty to
settle in shares at any time. The Amendment did not have a material impact on the Group's
consolidated financial statements.
9