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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)
aa) Foreign currencies
Foreign currency transactions are translated into Kuwaiti Dinars at rates of exchange prevailing on the
date of the transactions. Monetary assets and liabilities denominated in foreign currency at the end of
the reporting period are retranslated into Kuwaiti Dinars at rates of exchange prevailing on that date.
Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at
the rates prevailing on the date when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the retranslation of
monetary items, are included in consolidated statement of income for the period. Translation
differences on non-monetary items such as equity investments classified as available for sale are
included in "cumulative changes in fair value" in the consolidated statement of comprehensive income.
The assets and liabilities of the foreign subsidiary are translated into Kuwaiti Dinars at rates of
exchange prevailing at the end of the reporting period. The results of the subsidiary are translated into
Kuwaiti Dinars at rates approximating the exchange rates prevailing at the dates of the transactions.
Foreign exchange differences arising on translation are recognized directly in the consolidated
statement of comprehensive income. Such translation differences are recognized in the consolidated
statement of income in the period in which the foreign operation is disposed off.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets
and liabilities of the foreign entity and translated at the closing rate.
ab) Contingencies
Contingent liabilities are not recognized but disclosed in the consolidated financial statements except
when the possibility of an outflow of resources embodying economic losses is remote.
Contingent assets are not recognized in the consolidated financial statements but disclosed when an
inflow of economic benefits is probable.
ac) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision-maker. The chief operating decision-maker is identified as the person being
responsible for allocating resources, assessing performance and making strategic decisions regarding
the operating segments.
3.
Cash and cash equivalents
2010
Cash on hand and at banks
Short term bank deposits
Cash in investment portfolios
14,819,256
5,600,000
64,705
2009
20,760,706
7,182,970
236,628
20,483,961
28,180,304
The average effective interest rate on short term bank deposits was 1.75% per annum (2009 - 2%). These
deposits have an average maturity of 30 days (2009 - 30 days).
There is no material difference between the fair value and the book value of cash and cash equivalents.
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