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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)
Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable
assets, liabilities and contingent liabilities of the associate recognized at the date of acquisition is
recognized as goodwill. The goodwill is included within the carrying amount of the investment in
associate and is assessed for impairment as part of the investment. Any excess of the Group's share
of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of
acquisition, after reassessment, is recognized immediately in the consolidated statement of income,
I) Investment properties
Investment properties, which are properties constructed or in course of construction, held to eam
rentals and/or for capital appreciation, are stated at their fair value at the end of the reporting period,
Gains or losses arising from changes in the fair value of investment properties are included in the
consolidated statement of income for the period in which they arise,
Property interest that is held under an operating lease is classified and accounted for as investment
property when the property would otherwise meet the definition of an investment property and the
lessee uses the fair value model.
Investment properties are derecognized when either they have been disposed of or when the
investment property is permanently withdrawn from use and no future economic benefit is expected
from its disposal. Gains or losses arising on the retirement or disposal of an investment property are
recognized in the consolidated statement of income,
Transfers are made to investment property when, and only when, there is a change in use, evidenced
by the end of owner occupation, commencement of an operating lease to another party or completion
of construction or development. Transfers are made from investment property when, and only when,
there is a change in use, evidenced by commencement of owner occupation or commencement of
development with a view to sale,
m) Fixed assets
The initial cost of fixed assets comprises its purchase price and any directly attributable costs of
bringing the asset to its working condition and location for its intended use, Expenditures incurred
after the fixed assets have been put into operation, such as repairs and maintenance and overhaul
costs, are normally charged to the consolidated statement of income in the period in which the costs
are incurred, In situations where it can be clearly demonstrated that the expenditures have resulted in
an increase in the future economic benefits expected to be obtained from the use of an item of fixed
assets beyond its originally assessed standard of perfonmance,the expenditures are capitalized as an
additional cost of fixed assets,
Fixed assets are stated at cost less accumulated depreciation and impairment losses, When assets
are sold or retired, their cost and accumulated depreciation are eliminated from the accounts and any
gain or loss resulting from their disposal is included in the consolidated statement of income,
Land is not depreciated. Depreciation is computed on a straight-line basis over the estimated useful
life of other fixed assets as follows:
Furniture and equipment
Leasehold improvements
Computers and softwares
Motor vehicles
Useful life
(Years)
5
3-5
3
5
19