First Dubai English Q4 31-12-2020

FIRST DUBAI REAL ESTATE DEVELOPMENT COMPANY – K.S.C. (PUBLIC) AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2020 (All amounts are in Kuwaiti Dinars) 43 (iv) Fair value measurement of non-financial instruments (Properties held for trading, investment properties, Investment in associates) As at the reporting date, the Group has identified impact on the carrying values of its non-financial assets as at December 31, 2020 due to impact of COVID-19 arising from an impact on projected cash flows generated from these non-financial assets or the market participants expectations of the price depending on the approach used in determining the fair value of those assets at December 31, 2020. The Group is aware that certain geographies and sectors in which these assets exist are negatively impacted, and as the situation continues to unfold, the Group consistently monitors the market outlook and uses relevant assumptions in reflecting the values of these non- financial assets appropriately in the consolidated financial statements. Accordingly, the group had recognized an impact of KD 604,164 as fair value loss on investment properties and KD 16,951 arising from impairment of properties held for trading in addition to a decrease of KD 308,012 in the Group’s share of results from investment in associates. (v) Going concern The Group has performed an assessment on its ability to continue as a going concern considering current economic conditions and all available information about future risks and uncertainties. The projections have been prepared to cover the Group’s future performance, capital and liquidity requirements. The impact of COVID-19 may continue to evolve, but currently, the projections show that the Group has the required resources to continue in operations on a going concern, such position that remains significantly unaffected and unchanged since December 31, 2019. As a result, those consolidated financial statements have been prepared on a going concern basis. The Group had concluded that no material adjustments are required for liabilities and other assets as of the accompanied financial information date. The Group will carefully consider the measurement and recognition requirements for impairment losses on the Group's assets in the future, as the extent and duration of the economic impact of those events remains uncertain, since it depends on future developments that cannot be accurately predicted at this time, such as the rate of virus spread, the effectiveness of the containment measures taken and the trends and effectiveness of approved vaccinations. Given the ongoing uncertainty for the related economic impact, a reliable estimate of the impact cannot be currently made, but it may affect financial statements in future periods. The impact’s magnitude and amount may vary according to the extent and period during which those events are expected to end along with their effects.