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AL MAZAYA HOLDING COMPANY
K.S.C.
(HOLDING) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER
31,
2010
(All amounts are in Kuwaiti Dinars)
IFRS 2 (Amendment), "Group cash-settled and share-based payment transactions"
In addition to incorporating IFRIC 8, "Scope of IFRS 2", and IFRIC 11, "IFRS 2 - Group and treasury
share transactions", the amendments expand on the guidance in IFRIC 11 to address the
classification of Group arrangement that were not covered by that interpretation. The Amendment did
not have a material impact on the Group's consolidated financial statements.
Revised IFRS 3
IFRS 3 introduces significant changes in the accounting for business combinations occurring after the
effective date. Changes affect the valuation of non-controlling interest, the accounting for transaction
costs, the initial recognition and subsequent measurement of a contingent consideration and business
combinations achieved in stages. These changes will impact the amount of goodwill recognized, the
reported results in the period that an acquisition occurs and future reported results. It did not have a
material impact on the Group's consolidated financial statements.
IFRS 5 (Amendment), "Measurement of non-current assets (or disposal groups) classified as held-for-
sale"
The Amendment is part of the lASS's annual improvements project published in April 2009. The
Amendment provides clarification that IFRS 5 specifies the disclosures required in respect of non-
current assets (or disposal groups) classified as held for sale or discontinued operations. It also
clarifies that the general requirement of lAS 1 still apply, particularly paragraph 15 (to achieve a fair
presentation) and paragraph 125 (sources of estimation uncertainty) of lAS 1. The Amendment did not
have a material impact on the Group's consolidated financial statements.
lAS 7 "Statement of cash flows"
The Amendment is part of the lASS's annual improvements project published in April 2009. The
Amendment explicitly states that only expenditure that results in recognizing an asset can be
classified as a cash flow from investing activities.
IFRIC 17, "Distribution of non-cash assets to owners" (effective for annual periods beginning on or
after on or after 1 July 2009).
The interpretation is part of the lASS's annual improvements project published in April 2009. This
interpretation provides guidance on accounting for arrangements whereby an entity distributes non-
cash assets to shareholders either as a distribution of reserves or as dividends. IFRS 5 has also been
amended to require that assets are classified as held for distribution only when they are available for
distribution in their present condition and the distribution is highly probable.
Amended lAS 27 "Consolidated and Separate Financial Statements"
lAS 27 requires that a change in the ownership interest of a subsidiary (without loss of control) is
accounted for as a transaction with owners in their capacity as owners. Therefore, such transactions
will no longer give rise to goodwill, nor will they give rise to gains or losses. Furthermore, the amended
standard changes the accounting for losses incurred by the subsidiary as well as the loss of control of
a subsidiary. The changes by IFRS 3 and lAS 27 will affect future acquisitions or loss of control of
subsidiaries and transactions with non-controlling interest.
lAS 38 (Amendment), "Intangible Assets"
The Amendment is part of the lASS's annual improvements project published in April 2009 and the
Group adopted lAS 38 (Amendment) from the date IFRS 3 (Revised) is adopted. The Amendment
clarifies guidance in measuring the fair value of an intangible asset acquired in a business
combination and it permits the grouping of intangible assets as a single asset if each asset has similar
useful economic lives. The Amendment did not result in a material impact on the Group's consolidated
financial statements.
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