Printer Friendly

Saudi Capital Market Authority presses for transparency on IFRS progress.

The Saudi Capital Market Authority (CMA) has called on listed companies in Saudi Arabia to disclose their progress on the adoption of International Financial Reporting Standards (IFRS). The deadline for adoption is 1 January 2017.

The CMA has called on listed entities to disclose their IFRS transition progress in phases. By 1 September 2016, all listed companies should disclose on the Saudi Stock Exchange (Tadawul) web site:

Whether an IFRS transition plan had been prepared, which should include, as an example, the determination of the target date to approve the accounting policies.

Where a plan had not been prepared, the listed entity should determine the target date for preparing the plan. Such target dates should be appropriate enough to assure the transition to the IFRS before 1 January 2017.

Whether an IFRS experienced and specialized external consultant had been hired. Where a consultant had not been hired, the listed entity should disclose if it has a plan to hire a consultant and determine the target hiring date. Such target dates should be appropriate enough to assure the transition to the IFRS before 1 January 2017. If there is no plan to hire an external consultant, the listed entity should disclose the reasons for not hiring a consultant.

Whether an entity's internal team responsible for the IFRS transition plan and its implementation had been formulated. Where a team had not been formulated, the listed entity should disclose the reasons for not doing so.

The IFRS transition process difficulties, if any, which the listed entity is facing .

The target date for the preparation of the first set of IFRS financial statements and the periods covered by such financial statements.

In phase two, with a deadline of 30 October 2016, listed entities should disclose the following on the Tadawul web site:

Phase one disclosures updates.

Whether the accounting policies necessary for the preparation of IFRS financial statements had been approved. Where the accounting policies had not been approved, the listed entity should determine the target date for approving the aforementioned accounting policies. Such target dates should be appropriate enough to assure the transition to the IFRS before 1 January 2017.

Where the entity is ready to implement the IFRS, it would also be exempted from the above disclosures, stipulating that the entity should disclose that it has readily available IFRS financial statements and the significant effects as a result of implementing the IFRS.

Finally, by 31 January 2017, in phase three, listed entities should disclose the following on the Tadawul web site:

Phase one and two disclosures updates.

Whether an IFRS financial statements had been prepared and the periods, over which such financial statements had been prepared. Where an IFRS financial statements had not been prepared, the listed entity should disclose the reasons for not doing so, and the target date for preparing such financial statements.

The significant effects on the entity as a result of implementing the IFRS, the moment the entity can determine such effects. Where the effects of implementing the IFRS is immaterial , the listed entity should disclose so.

Any hindrances that might affect the listed entity ability to prepare its IFRS financial statements.

The extent of the listed entity's readiness to prepare its IFRS financial statements for 2017 first quarter within the applicable regulatory period.

[c] 2016 CPI Financial. All rights reserved. Provided by SyndiGate Media Inc. ( Syndigate.info ).
COPYRIGHT 2016 SyndiGate Media Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2016 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:CPI Financial
Date:Aug 22, 2016
Words:560
Previous Article:Bank Nizwa partners with SQU to offer Islamic finance Summer Program.
Next Article:FGB 'reversing into' NBAD, consolidate pro forma financials released.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters