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) 48 28 . Fiduciary accounts The fiduciary accounts resulted from the Group’s management for projects on behalf of others which are not reflected in the consolidated financial statements include balances amounting to KD 220,883 (2019 – KD 941,228) 29 . Fair value measurement The Group measures financial assets such as financial assets at FVTPL and financial assets at FVTOCI and non– financial assets such as investment properties at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability, or • In the absence of a principal market, in the most advantageous market for the asset or liability. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities. Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. The following table shows an analysis of captions recorded at fair value by level of the fair value hierarchy: 2020 Level 1 Level 2 Level 3 Total Financial assets at FVTPL - - 372,616 372,616 Financial assets at FVTOCI - 1,259,696 9,880,250 11,139,946 Investment properties - 49,212,941 119,593,655 168,806,596 Total - 50,472,637 129,846,521 180,319,158 2019 Level 1 Level 2 Level 3 Total Financial assets at FVTPL 48,147 - 777,853 826,000 Financial assets at FVTOCI - 3,115,718 - 3,115,718 Investment properties - 39,592,464 131,559,917 171,152,381 Total 48,147 42,708,182 132,337,770 175,094,099 For assets and liabilities that are recognized in the consolidated financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization based on the lowest level input that is significant to the fair value measurement as a whole at the end of each reporting period. The management assessed that the fair values of cash and cash equivalent, trade receivables, trade payables and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.