Page 64 - 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)

from the commencement date and do not contain a purchase option). It also applies the
lease of low-value assets recognition exemption to leases of office equipment that are
considered of low value. Lease payments on short-term leases and leases of low-value
assets are recognized as expense on a straight-line basis over the lease term.

i) Investment properties
Investment properties comprise completed property, property under construction or re-
development held to earn rentals or for capital appreciation or both. Investment properties
are initially measured at cost including purchase price and transactions costs. Subsequent
to the initial recognition, investment properties are stated at their fair value at the end of
the reporting period. Gains and losses arising from changes in the fair value of investment
properties are included in the consolidated statement of profit or loss for the period in which
they arise.
Subsequent expenditure is capitalized to the asset’s carrying amount only when it is probable
that future economic benefits associated with the expenditure will flow to the Group and
the cost of the item can be measured reliably. All other repairs and maintenance costs are
expensed when incurred. When part of an investment property is replaced, the carrying
amount of the replaced part is derecognized.

Investment properties are derecognized when either they have been disposed of (i.e. at
the date the recipient obtains control) or when the investment property is permanently
withdrawn from use and no future economic benefit is expected from its disposal. Gains
or losses arising on the retirement or disposal of an investment property are recognized in
consolidated statement of profit or loss.
Transfers are made to investment property when, and only when, there is a change in use,
evidenced by the end of owner occupation or commencement of an operating lease to
another party. Transfers are made from investment property when, and only when, there
is a change in use, evidenced by commencement of owner occupation or commencement
of development with a view to sale. If owner-occupied property becomes an investment
property, the Group accounts for such property in accordance with the policy stated under
property, plant and equipment up to the date of change in use.

j) Impairment of non-financial assets

At the end of each reporting date, the Group reviews the carrying amounts of its assets to
determine whether there is any indication that those assets have suffered an impairment
loss. If any such indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss (if any). Where it is not possible to estimate the
recoverable amount of an individual asset, the Group estimates the recoverable amount of
the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of the fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value
using a discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset.

If the recoverable amount of an asset (or cash generating unit) is estimated to be less than

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