Al Meera Consumer Goods Q P S C : Consolidated Financial Statements for the year ended 31 December 2021

CONTENTS

Page(s)

Independent auditor's report

--

Consolidated statement of profit or loss

1

Consolidated statement of comprehensive income

2

Consolidated statement of financial position

3

Consolidated statement of changes in equity

4

Consolidated statement of cash flows

5 - 6

Notes to the consolidated financial statements

7 - 71

Key Audit Matters

How our audit addressed the key audit matter

Impairment of goodwill

We tested the impairment models and the key

As at 31 December 2021, the carrying value of

assumptions used by management with the involvement

of our

valuation

specialists. Our

audit

procedures

goodwill amounted to QR. 344 million, or 12% of total

included the following:

assets as disclosed in Note 12.

• Understanding the business process for the

In accordance with IAS 36, Impairment of Assets, an

impairment

assessment,

identifying

the

entity is required to test goodwill acquired in a business

relevant internal controls and testing their

combination for impairment at least annually

design,

implementation

and

operating

irrespective of whether there is any indication of

effectiveness of controls over the impairment

impairment.

assessment process, including indicators of

An impairment is recognised on the consolidated

impairment.

•

Evaluating

whether the cash flows in

the

statement of financial position when the recoverable

models used by management to calculate the

amount is less than the net carrying amount in

recoverable value are reasonable and are in

accordance with IAS 36, as described in Note 12 to the

accordance with the requirements of IFRSs.

consolidated financial statements. The determination of

• Obtaining and analysing the business plans for

the recoverable amount is mainly based on discounted

each such asset (or CGU, as applicable) to

future cash flows.

assess the accuracy of the computations and

We considered the impairment of goodwill to be a key

the overall reasonableness of key assumptions;

audit matter, given the method for determining the

• Assessing the methodology used by the Group

recoverable amount and the significance of the amount

to estimate the Weighted Average Cost of

in the Group's consolidated financial statements.

Capital (WACC).

We performed sensitivity analysis on the key

assumptions used by management to understand the

extent to which these assumptions need to be adjusted

before resulting in additional impairment loss.

We assessed the overall presentation, structure and

content of the related disclosures in notes 4 and 12 to

the financial statements against the requirements of

IFRSs.

Key Audit Matters

How our audit addressed the key audit matter

Revenue recognition

Revenue recognition from sales of goods to retail

We have inquired with sales, marketing department,

and other process owners to understand the critical path

customers, is recognized when control of the goods has

of sales process.

transferred, being at the point the customer purchases

the goods at the retail outlet. Payment of the transaction

We have performed audit procedures, which were a

price is due immediately at the point the customer

combination of substantive testing and tests of controls.

purchases the goods. Revenue is measured at fair value

We considered the appropriateness of the Group's

of consideration received or receivable, taking into

revenue recognition accounting policies, including the

account the contractually agreed terms of payment.

recognition and classification criteria.

Revenue recognition is considered a significant risk

We performed test of details to verify occurrence and

given the complexity of the IT systems involved, the

accuracy of revenue transactions on a sample basis.

high volume of transactions and changes caused by

price updates and promotional offers affecting the

Due to the high reliance of revenue recognition on

various products and services offered.

information technology systems, we evaluated the

Revenue for the year is disclosed in note 5 to the

integrity of the general IT control environment and

tested the operating effectiveness of key IT application

consolidated financial statements.

controls.

We assessed the disclosure in the consolidated

financial statements relating to revenue against the

requirements of IFRSs.

Other Information