SIDC corrects SAR 132.9M accounting treatment for Ibn Rushd stake

This adjustment, made in accordance with the requirements of the International Financial Reporting Standards (IFRS), relates to its stake in Arabian Industrial Fibers Co. (Ibn Rushd).

The company said the transferred amount will be reclassified from accumulated losses before derecognition of the related asset by reversing the accounting entry recorded by the end of 2023. This correction will restore the balance of the fair value reserve of financial assets through OCI within equity.

The comparative financial statements for 2023 and 2024 will be restated when preparing the 2025 financial statement, with full disclosure of the nature and impact of the adjustment in line with international standards.

SIDC said that the financial impact of this correction is limited to a reclassification within equity, with SAR 132.9 million moved from accumulated losses back to the fair value reserve of financial assets at fair value through OCI.

There will be no effect on operating activities, cash flows, assets, or liabilities, the statement added.

The company also clarified that the impact on retained earnings is not distributable as cash, as it arises from a reclassification due to correcting an accounting treatment rather than from realized operating profits. Moreover, it does not affect the company’s operational performance.

SIDC emphasized that the correction does not constitute a change in accounting policies or estimates and is part of its ongoing efforts to comply with regulations and enhance transparency and disclosure.