Page 51 - JTC-Annual Report-2025-Eng

JTC Logistics Transportation & Stevedoring Company K.S.C.P
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As at December 31, 2025
(All amounts are in Kuwaiti Dinars)

The consolidated financial statements are presented in Kuwaiti Dinars (“KD”) which is the
functional currency of the Parent Company and are prepared under the historical cost basis,
except for financial assets at FVOCI, investment properties and leasehold lands included in”
property and equipment” that are stated at their fair value.
Historical cost is generally based on the fair value of the consideration given in exchange for
goods and services. 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 preparation of consolidated financial statements in conformity with International
Financial Reporting Standards requires management to make judgments, estimates and
assumptions in the process of applying the Group’s accounting policies. Material accounting
judgments, estimates and assumptions are disclosed in Note 2(u). The key sources of
estimation uncertainty are consistent with the annual audited financial statements of the
Group for the year ended December 31, 2024.
The Group has prepared the consolidated financial statements on the basis that it will
continue to operate as going concern.

Adoption of new and revised Standards

Amendments on the standards that are effective for the current year
The accounting policies used in the preparation of consolidated financial statements are
consistent with those used in the previous year except for the changes due to implementation
of the following new amendments on the applied International Financial Reporting Standards
as at January 1, 2025:
Lack of Exchangeability (Amendments to IAS 21)

The amendments contain guidance to specify when a currency is exchangeable and how to
determine the exchange rate when it is not.

An entity is required to recognize any effect of initially applying the amendments as an
adjustment to the opening balance of retained earnings when the entity reports foreign
currency transactions. When an entity uses a presentation currency other than its functional
currency, it recognizes the cumulative amount of translation differences in equity.

The adoption of the above amendment did not have material impact on the disclosures or on
the amounts reported in these consolidated financial statements.

New standards and amendments issued but not yet effective

At the date of authorization of these financial statements, the Group has not applied the
following new and revised Standards that have been issued but are not yet effective:
IFRS 18 - Presentation and Disclosure in Financial Statements
The new standard, IFRS 18, replaces IAS 1 Presentation of Financial Statements while carrying
forward many of the requirements in IAS 1.
IFRS 18 introduces new requirements to:

▶ present specified categories and defined subtotals in the statement of profit or loss,

49 JTC LogisTiCs TransporTaTion & sTevedoring Company K.s.C.p.