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) 37 The Group has complied with the Executive Regulations of Capital Markets Authority regarding the valuation of investment properties. Valuation of investment properties was conducted by independent appraisers with recognized and relevant professional qualification using recognized valuation techniques and principles. In estimating the fair value of investment properties, the valuers had used the valuation techniques listed in the following schedule and had considered the nature and usage of the investment properties: 2020 Class of investment property Valuation technique Level 2 Level 3 Total Lands Comparable market prices 32,343,721 - 32,343,721 Residential buildings Comparable market prices 8,997,926 - 8,997,926 Residential buildings Income capitalization - 34,661,181 34,661,181 Commercial complexes Income capitalization - 68,457,573 68,457,573 Commercial complexes Comparable market prices 7,871,294 - 7,871,294 Rights to use real estate assets Discounted cash flows - 16,474,901 16,474,901 Total 49,212,941 119,593,655 168,806,596 2019 Class of investment property Valuation technique Level 2 Level 3 Total Lands Comparable market prices 33,194,636 - 33,194,636 Residential buildings Comparable market prices 6,054,832 - 6,054,832 Residential buildings Income capitalization - 34,744,974 34,744,974 Commercial complexes Income capitalization - 79,715,600 79,715,600 Commercial complexes Comparable market prices 342,996 - 342,996 Rights to use real estate assets Discounted cash flows - 17,099,343 17,099,343 Total 39,592,464 131,559,917 171,152,381 Certain investment properties amounting to KD 113,514,936 (2019 - KD 124,547,722) are pledged as collateral against Islamic bank facilities and term loans (Note 13 and 14). 10. Goodwill Goodwill represents excess of consideration paid for acquisition of First Dubai Real Estate Development Company K.S.C.P. shares over and above the fair value of the identifiable assets and liabilities. The management assessed the carrying value of goodwill for impairment and did not notice indications for impairment loss as at December 31, 2020. 11. Accounts payable and other credit balances 2020 2019 Trade payables 5,829,081 6,999,008 Retention payables to contractors 952,061 1,666,658 Dividends payable to shareholders 241,192 250,433 Deferred tax liability 36,196 239,504 Other payables and accrued expenses 7,634,526 6,616,552 14,693,056 15,772,155 Classified as: 2020 2019 Current portion 6,585,631 6,093,979 Non-current portion 8,107,425 9,678,176 14,693,056 15,772,155