Page 72 - 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)

techniques and the principles of IFRS 13. Investment property under construction is
measured based on estimates prepared by independent real estate valuation experts,
except where such values cannot be reliably determined.

One main method is used to determine the fair value of the investment properties is
the comparative analysis which is based on the assessment made by an independent
real estate appraiser using values of actual deals transacted recently by other parties
for properties in a similar location and condition and based on the knowledge and
experience of the real estate appraiser.
(v) Impairment of non-financial assets

An impairment exists when the carrying value of an asset or cash generating unit
exceeds its recoverable amount, which is the higher of its fair value less costs to sell
and its value in use. The fair value less costs to sell calculation is based on available
data from binding sales transactions in an arm’s length transaction of similar assets
or observable market prices less incremental costs for disposing of the asset. The
value in use calculation is based on a discounted cash flow model.

The cash flows are derived from the budget for the next five years and do not include
restructuring activities that the Group is not yet committed to or significant future
investments that will enhance the asset’s performance of the cash generating unit
being tested. The recoverable amount is most sensitive to the discount rate used for
the discounted cash flow model as well as the expected future cash inflows and the
growth rate used for extrapolation purposes.
(vi) Taxes
The Group recognizes a liability for the anticipated taxes levied in the jurisdictions
of its activity based on estimates of whether additional taxes will be due. Where the
final tax outcome of these matters is different from the amounts that were initially
recorded, such differences will impact the income tax and deferred tax provisions in
the period in which such determination is made. Any changes in the estimates and
assumptions may have an impact on the carrying values of the deferred taxes.

(vii) Leases
Key sources of estimation uncertainty in the application of IFRS 16 include, among
others, the following:

▶ Estimation of the lease term;
▶ Determination of the appropriate rate to discount the lease payments;
▶ Assessment of whether a right-of-use asset is impaired.

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