Saudi Paper Manufacturing Co. expects accumulated losses to reach SAR 151.5 million, or 33.6 percent of capital as on December 31, 2016, due to the implementation of the International Financial Reporting Standards (IFRS), the company said in a statement on Saudi bourse, Tadawul.
Saudi Paper posted an impairment of investments at SAR 64.7 million, due to the IFRS adoption. Also, the new accounting policies would increase the doubtful loan provisions by SAR 22.2 million, and would inflate the accumulated amortization by SAR 10.9 million.
Pre-operating costs would drop by SAR 3.1 million, while end-of-service payments would decrease by SAR 1.1 million.
The Saudi insurer will be subject to the CMA’s new rules governing listed companies with accumulated losses of more than 20 percent of their capital, as of April 22, 2017.
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