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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)
Standards and Interpretations issued but not yet effective
The following lASS Standards and Interpretations have been issued but are not yet effective, and
have not yet been adopted by the Group:
IFRS 9 "Financiallnstruments"
The Standard, which will be effective for annual periods beginning on or after January 1, 2013,
specifies how an entity should classify and measure its financial assets. It requires all financial assets
to be classified entirely based on the entity's business model for managing the financial assets and
the contractual cash flow characteristics of the financial assets. Financial assets are measured either
at amortized cost or fair value.
These requirements improve and simplify the approach for classification and measurement of financial
assets compared with the requirements of lAS 39. They apply a consistent approach to classifying
financial assets and replace the numerous categories of financial assets in lAS 39, each of which had
its own classification criteria. They also result in one impairment method, replacing the numerous
impairment methods in lAS 39 that arise from the different classification categories.
Others:
Limited Exemption from Comparative Disclosures for First time
Adopters
Amendments to IFRS 7 Disclosures - Transfers of Financials Assets
lAS 24 (Revised in 2009)
- Related Party Disclosures
Amendments to lAS 32
- Classification of Rights Issues
Amendments to IFRIC 14
- Prepayments of a Minimum Funding Requirement
IFRIC 19
- Extinguishing Financial Liabilities With Equity Instruments
Amendments to IFRS 1
These amended standards are not expected to have a material impact on the Group's consolidated
financial statements.
The preparation of the consolidated financial statements in conformity with International Financial
Reporting Standards requires management to make judgments, estimates and assumptions in the
process of applying the Group's accounting policies. Significant accounting judgments, estimates and
assumptions are disclosed in Note 2(c).
b) Recognition / derecognition of financial assets and financial liabilities
A financial asset or a financial liability is recognized when the Group becomes a party to the
contractual provisions of the instrument. Financial asset (in whole or in part) is derecognized when the
contractual rights to the cash flows from the financial asset expire or when the Group transfers
substantially all the risks and rewards of ownership or when the Group has neither transferred or
retained substantially all the risks and rewards of ownership and when it no longer has control over
the asset or a proportion of the assets. A financial liability is derecognized when the obligation
specified in the contract is discharged, cancelled or expired.
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