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AL MAZAYA HOLDING COMPANY K.S.C. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
MAZAYA
AI,M
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28.
FINANCIAL INSTRUMENTS (CONTINUED)
Fair value of financial instruments
Management believes that the fair value of the financial instruments at the end of the reporting period is not
significantly different from their respective carrying values.
The different levels pertaining to fair valuation of financial instruments have been defined as follows:
• Levell: quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following table presents the Group's equity securities that are measured at fair value at December 31:
Level
1
Level2
Level3
Total
KD
KD
KD
KD
2011
Investments available for sale
1,980,094
8,476,761
5,174,879
15,631,734
2010
Investments available for sale
2,496,543
11,490,663
4,419,702
18,406,908
2009
Investments available for sale
1,393,094
6,085,331
16,603,492
24,081,917
29.
OPERATIONAL RISK
Operational risk is the risk of loss arising from inadequate or failed internal processes, human error, and
systems failure or from external events. The Group has a set of policies and procedures, which are approved by
the Board of Directors and are applied to identify, assess and supervise operational risks. The Group's
management ensures compliance with policies and procedures and monitors operational risk as part of overall
risk management.
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