Page 68 - 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)

management, transportation and warehousing services. Service revenue are recognised
over a period of time when the services are rendered to the customer.

The Group also recognises revenue from contracts of ‘sale of services’ or ‘bundled sale
of goods and services contracts that are viewed as a single performance obligation’
over time using an output method in measuring progress, generally based on cost-to-
cost measure of progress because it faithfully depicts the Group’s performance towards
complete satisfaction of the performance obligation.
The Group elected to apply the ‘right to invoice’ practical expedient for contracts that
contain fixed amounts and rates for manpower and materials specified in a contract,
when the Group determines that right to consideration from a customer corresponds
directly with the value of the Group’s performance completed to date.

(ii) Other income
Other income is recognized on an accrual basis.

q) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to get
ready for their intended use or sale, are added to the cost of those assets, until such time as
the assets are substantially ready for their intended use or sale. Investment income earned
on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalization.
All other borrowing costs are recognized in the consolidated statement of profit or loss in the
period in which they are incurred. Borrowing costs consist of interest and other costs that an
entity incurs in connection with the borrowing of funds.

r) Foreign currencies
Foreign currency transactions are translated into Kuwaiti Dinars at rates of exchange
prevailing on the date of the transactions. Monetary assets and liabilities denominated
in foreign currency as at the end of reporting date are retranslated into Kuwaiti Dinars at
rates of exchange prevailing on that date. Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated at the rates prevailing on the date when
the fair value was determined. Non-monetary items that are measured in terms of historical
cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the retranslation
of monetary items, are included in consolidated statement of profit or loss for the period.
Translation differences on non-monetary items such as equity investments classified as
financial assets at FVOCI are included in “fair value reserve” in other comprehensive income.

The assets and liabilities of the foreign subsidiary are translated into Kuwaiti Dinars at rates of
exchange prevailing at the end of reporting period. The results of the subsidiary are translated
into Kuwaiti Dinars at rates approximating the exchange rates prevailing at the dates of the
transactions. Foreign exchange differences arising on translation are recognized directly in

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