Page 62 - 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)

Assets category Years

Motor vehicles and equipment 3 - 15

Leasehold land improvement 10
Prefabricated buildings 5 - 20

Furniture and fixtures 3 - 5

Tools and machinery 5

Capital work in progress is stated at cost. Following completion, capital work in progress is
transferred into the relevant class of property and equipment.

The useful life and depreciation method are reviewed periodically to ensure that the method
and period of depreciation are consistent with the expected pattern of economic benefits
from items of property and equipment.
An item of property and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset.

g) Revaluation surplus

The asset revaluation surplus is used to record increases in the fair value of land and decreases
to the extent that such decrease relates to an increase on the same asset previously recognised
in other comprehensive income.

h) Leases
Group as a lessor

Leases in which a significant portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases. All other leases are classified as finance leases. The
determination of whether an arrangement is, or contains a lease is based on the substance of
the arrangement and requires an assessment of whether the fulfillment of the arrangement
is dependent on the use of a specific asset or assets and the arrangement conveys a right to
use the asset.

(i) Finance lease

Amounts due from lessees under finance leases are recorded as receivables at the
amount of the Group’s net investment in the leases. Finance lease income is allocated to
accounting periods so as to reflect a constant periodic rate of return on the Group’s net
investment outstanding in respect of the leases.
(ii) Operating lease

Rental income from operating leases is recognized on a straight-line basis over the term of
the relevant lease. Initial direct costs incurred in negotiating and arranging an operating
lease are added to the carrying amount of the leased asset and recognized on a straight-
line basis over the lease term.

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