Mazaya_FS_E Q4. 20

AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC) AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2020 (All amounts are in Kuwaiti Dinars) 12 The amendments are effective for annual reporting periods beginning on or after January 1, 2022. The amendments are not expected to have a material impact on the Group. Annual Improvements to IFRS Standards 2018 – 2020 Cycle The following is the summary of the amendments from the 2018-2020 annual improvements cycle: IFRS 9 Financial Instruments - Fees in the ’10 per cent’ test for derecognition of financial liabilities The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf. An entity applies the amendment to financial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment. The amendment is effective for annual reporting periods beginning on or after January 1, 2022 with earlier adoption permitted. The amendments are not expected to have a material impact on the Group. Amendments to IAS 1 – Classification of Liabilities as Current or Non-current In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current. The amendments clarify: • What is meant by a right to defer settlement. • That a right to defer must exist at the end of the reporting period. • That classification is unaffected by the likelihood that an entity will exercise its deferral right. • That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification. The amendments are effective for annual reporting periods beginning on or after January 1, 2023 and must be applied retrospectively. The Group is currently assessing the impact the amendments will have on current practice. The amendments are not expected to have a material impact on the Group. Other amendments and improvements issued by IASB are not expected to have a material impact on the Group. b) Basis of consolidation: The consolidated financial statements incorporate the financial statements of the Parent Company and the following subsidiaries (together the “Group”): Percentage of holding Name of subsidiary Country of incorporation Principal activities 2020 2019 Al Mazaya Real Estate Development Company K.S.C (Closed) State of Kuwait Real estate 97.98% 97.98% Gulf Turkey for General Trading and Contracting Company W.L.L State of Kuwait Real estate 98% 98% First Dubai Real Estate Development Company – K.S.C.P State of Kuwait Real estate 89.91% 89.91% Mezzan Combined For General Trading Company – W.L.L State of Kuwait Real estate 99% 99% Al Yammar Kuwaiti Agriculture Company S.P.C. State of Kuwait Real estate 100% 100% Mazaya Ritim Istanbul Insaat Anonim Sirketi Turkey Real estate 90% 90% Mazaya Real Estate Turkey Gayrimenkul Yatirimlari Anonim Sirketi Turkey Real estate 100% 100% Al Mazaya Lebanon Company- S.A.L (Holding) Lebanon Real estate 99.85% 99.85% Grand Mazaya Real Estate Company W.L.L KSA Real estate 99% 99% Al Mazaya Real Estate Development Company L.L.C Oman Real estate 100% 100% Mazaya Al Ghad – S.P.C. UAE Real estate 100% 100% Al Mazaya Prime for Project Management - W.L.L. State of Kuwait Real estate 99% 99%