Page 65 - 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)

its carrying amount, the carrying amount of the asset (or cash generating unit) is reduced
to its recoverable amount. An impairment loss is recognized immediately in consolidated
statement of profit or loss, unless the relevant asset is carried at a revalued amount, in which
case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash
generating unit) is increased to the revised estimate of its recoverable amount, but so that
the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognized for the asset (or cash generating unit)
in prior years.

A reversal of an impairment loss is recognized immediately in consolidated statement of profit
or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of
the impairment loss is treated as a revaluation increase.

k) Provisions

A provision is recognized when the Group has a present legal or constructive obligation as
a result of a past event and it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation. Provisions are reviewed at the end of each financial year and
adjusted to reflect the current best estimate. Where the effect of the time value of money is
material, the amount of a provision is the present value of the expenditures expected to be
required to settle the obligation. Provisions are not recognized for future operating losses.

l) Provision for end of service indemnity

Provision is made for amounts payable to employees under the Kuwaiti Labor Law in the
private sector and employee’s contracts and the applicable labor laws in the countries where
the subsidiaries operate. This liability, which is unfunded, represents the amount payable
to each employee as a result of involuntary termination at the end of financial period and
approximates the present value of the final obligation.

m) Dividend distribution to shareholders of the Parent Company

The Group recognizes a liability to make cash and non-cash distributions to shareholders
of the Parent Company when the distribution is authorized and the distribution are no
longer at the discretion of the Group. A distribution is authorized when it is approved by the
shareholders of the Parent Company at the Shareholder’s Annual General Assembly Meeting.
A corresponding amount is recognized directly in equity.
Non-cash distributions are measured at the fair value of the assets to be distributed with fair
value re-measurement recognized directly in equity. Upon distribution of non-cash assets,
any difference between the carrying amount of the liability and the carrying amount of the
assets distributed is recognized in the consolidated statement of profit or loss.
Distributions for the year that are approved after the reporting date are disclosed as an event
after the date of consolidated statement of financial position.

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