KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2012
F-112
29.
OPERATING LEASE ARRANGEMENTS
2012
2011
USD 000’s
USD 000’s
Minimum lease payments under operating leases recognised in
the consolidated statement of income
1,326
1,781
At the consolidated statement of financial position date, the Group had outstanding commitments for future
minimum lease payments under operating leases, which fall due as follows;
Within one year
1,888
1,410
Between two years and five years
215
591
2,103
2,001
Operating lease payments represent rentals payable by the Group for certain of its office properties. Leases
are negotiated for an average term of one to two years and rentals are fixed for an average of two years with
an option to extend for a further two years at the then prevailing market rate.
27.
FINANCIAL INSTRUMENTS
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the
basis of measurement and the basis on which income and expenses are recognised, in respect of each class of
financial asset and financial liability are disclosed in note 3 to these consolidated financial statements.
Categories of financial instruments
2012
2011
USD 000’s
USD 000’s
Financial assets
Loans and receivables
- Trade and other receivables
208,102
176,055
Cash and bank balances
48,384
40,477
Financial liabilities
At amortised cost
- Trade and other payables
44,401
52,964
- Long-term loans
60,000
45,000
- Current portion of long term loans
-
8,000
At fair value through profit and loss account (FVTPL)
-Designated as FVTPL - convertible loans
83,213
-
-Derivative financial instruments
484
750
Fair value of financial instruments
(a)
Cash, Bank, trade and other receivables balances approximates the carrying value due to short-term
nature of these instruments.
(b)
Fair value of loans from banks approximates carrying value which is recognised at amortised cost.
(c)
Financial assets and liabilities that are measured subsequent to initial recognition at fair value are
derivatives (note 24) and convertible loans (note 21).
There have been no transfers between categories during the period.
