Page 66 - 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)

n) Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
new shares are shown in equity as a deduction from the proceeds.

o) Treasury shares
Treasury shares consist of the Parent Company’s own shares that have been issued,
subsequently reacquired by the Group and not yet reissued or canceled. The treasury shares
are accounted for using the cost method. Under the cost method, the weighted average cost
of the shares reacquired is charged to a contra equity account. When the treasury shares
are reissued, gains are credited to a separate account in shareholders’ equity (treasury shares
reserve) which is not distributable till the holding period of treasury shares. Any realized losses
are charged to the same account to the extent of the credit balance on that account. Any
excess losses are charged to retained earnings, reserves, and then share premium. Gains
realized subsequently on the sale of treasury shares are first used to offset any recorded losses
in the order of share premium, reserves, retained earnings and the treasury shares reserve
account. No cash dividends are paid on these shares. The issue of bonus shares increases the
number of treasury shares proportionately and reduces the average cost per share without
affecting the total cost of treasury shares.

Where any of the Group’s company purchases the Parent Company’s equity share capital
(treasury shares), the consideration paid, including any directly attributable incremental costs
is deducted from equity attributable to the Parent Company’s equity holders until the shares
are cancelled or reissued. Where such shares are subsequently reissued, any consideration
received, net of any directly attributable incremental transaction costs is included in equity
attributable to the Parent Company’s shareholders.

p) Revenue from contracts with customers

Revenue from contracts with customers is recognized when control of the goods or services
are transferred to the customer at an amount that reflects the consideration to which the
Group expects to be entitled in exchange for those goods or services. The Group has generally
concluded that it is the principal in its revenue arrangements, because it typically controls the
goods or services before transferring them to the customer.
The Group applies a five steps model are as follows to account for revenues arising from
contracts:
▶ Step 1: Identify the contract with the customer – A contract is defined as an agreement
between two or more parties that creates enforceable rights and obligations and sets out
the criteria for every contract that must be met.
▶ Step 2: Identify the performance obligations in the contract – A performance obligation is
a promise in a contract with the customer to transfer goods or services to the customer.
▶ Step 3: Determine the transaction price – The transaction price is the amount of
consideration to which the Group expects to be entitled in exchange of transferring
promised good or services to a customer, excluding amounts collected on behalf of third
parties.

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