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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)
d) Principles of consolidation
Subsidiaries are those enterprises controlled by the Parent Company. Control exists when the Parent
Company has the power, directly or indirectly, to govern the financial and operating policies of an
enterprise so as to obtain benefits from its activities. The financial statements of subsidiaries are
included in the consolidated financial statements from the date that control effectively commences until
the date that control effectively ceases. Inter-company balances and transactions, including inter-
company profits and unrealized profits and losses are eliminated on consolidation. Consolidated financial
statements are prepared using uniform accounting policies for like transactions and other events in
similar circumstances.
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the
Group's equity therein. Non-controlling interests consist of the amount of those interests at the date of
the original business combination and the non-controlling shareholders' share of changes in equity since
the date of the combination.
Non-controlling interests are measured at either fair value, or at its proportionate interest in the
identifiable assets and liabilities of the acquiree, on a transaction-by-transaction basis.
A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an
equity transaction. Losses are attributed to the non-controlling interest even if that results in a deficit
balance. If the Group loses control over a subsidiary, it:
• Derecognizes the assets (including goodwill) and liabilities of the subsidiary;
•
Derecognizes the carrying amount of any non-controlling interest;
• Derecognizes the cumulative foreign currency translation differences, recorded in equity;
• Recognizes the fair value of the consideration received;
• Recognizes the fair value of any investment retained;
•
Recognizes any surplus or deficit in the consolidated statement of income; and
•
Reclassifies the Parent Company's share of components previously recognized in other
comprehensive income to the consolidated statement of income or retained earnings, as
appropriate.
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