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KUWAIT ENERGY PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2017
17
3.
SIGNIFICANT ACCOUNTING POLICIES
Statement of compliance
These consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards (“IFRSs”) as adopted by the European Union.
Basis of preparation
These consolidated financial statements have been prepared on the historical cost basis, except for the financial
instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies
below. These consolidated financial statements are presented in US Dollars (“US$”), which is the Company’s functional
and presentation currency, rounded off to the nearest thousand. The principal accounting policies adopted are set out
below.
Basis of consolidation
These consolidated financial statements incorporate the financial statements of the Company and entities controlled
by the Company (its subsidiaries) as detailed in note 32. Control is achieved when the Group is exposed, or has rights,
to variable returns from its involvement with the investee and has the ability to affect those returns through its power
over the investee. Specifically, the Group controls an investee if and only if the Group has:
Power over the investee
Exposure, or rights, to variable returns from its involvement with the investee, and
The ability to use its power over the investee to affect its returns
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
facts and circumstances in assessing whether it has power over an investee, including:
The contractual arrangement with the other vote holders of the investee
Rights arising from other contractual arrangements
The Group’s voting rights and potential voting rights
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement
from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Profit or loss and each component of Other Comprehensive Income (OCI) are attributed to owners of the Group and
to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. Where
necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line
with those used by other members of the Group. All intra-group transactions, balances, income and expenses are
eliminated in full on consolidation.