Saudi-listed firms required to disclose details in IFRS push

Saudi-listed firms are required from today to disclose details under a new initiative to adopt accounting standards in line with International Financial Reporting Standards (IFRS), the kingdom’s Capital Market Authority (CMA) said on Sunday.

During the first stage, which runs from August 21 to September 1, firms must disclose whether a plan is developed to facilitate the application of IFRS, including the target date to approve accounting policies.

Companies must indicate whether an external advisor and internal team have been hired or appointed to supervise and implement the transition to IFRS.

Firms must state any obstacles to implementing the new system, if any, along with the target date to prepare the first IFRS-based financial statements, the country’s market regulator explained.

In the second phase, companies will disclose related updates during a one-month period which will end on October 30. They must clarify whether the IFRS-related accounting policies are approved, and set a target date to approve such policies ahead of January 1, 2017.

The third stage will be implemented from January 1 until January 31. During this period, companies will be required to announce related financial impact, if any, as well as obstacles to preparing the new financial statements.

The CMA added that the measures aim to help Tadawul-listed firms shift to the IFRS system by January 1, 2017.