Page 69 - 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)

other comprehensive income. Such translation differences are recognized in consolidated
statement of profit or loss in the period in which the foreign operation is disposed off.

s) Contingencies

Contingent liabilities are not recognized in the consolidated financial statements unless it is
probable as a result of past events that an outflow of economic resources will be required to
settle a present, legal or constructive obligation; and the amount can be reliably estimated.
Else, they are disclosed unless the possibility of an outflow of resources embodying economic
losses is remote.
Contingent assets are not recognized in the consolidated financial statements but disclosed
when an inflow of economic benefits as a result of past events is probable.

t) Segment reporting
A segment is a distinguishable component of the Group that engages in business activities
from which it earns revenue and incurs costs. Operating segments are reported in a manner
consistent with the internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker is identified as the person being responsible for allocating
resources, assessing performance and making strategic decisions regarding the operating
segments.

u) Material accounting estimates and judgments

The Group makes judgments, estimates and assumptions concerning the future. The
preparation of consolidated financial statements in conformity with International Financial
Reporting Standards requires management to make judgments, estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the consolidated financial statements and the reported amounts
of revenue and expenses during the year. Actual results could differ from the estimates.
a) Judgments:
In the process of applying the Group’s accounting policies which are described in Note 2,
management has made the following judgments that have the most significant effect
on the amounts recognized in the consolidated financial statements.
(i) Revenue recognition
Revenue is recognized to the extent it is probable that the economic benefits will
flow to the Group and the revenue can be reliably measured. The determination of
whether the revenue recognition criteria as specified under IFRS 15 and revenue
accounting policy explained in Note 2(p) are met requires significant judgment.

(ii) Determination of contract cost
Determination of costs which are directly related to the specific contract or attributable
to the contract activity in general requires significant judgment. The determination
of contract cost has a significant impact upon revenue recognition in respect of long-
term contracts. The Group follows guidance of IFRS 15 for determination of contract
cost and revenue recognition.

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